PT Sawit Sumbermas Sarana Tbk (SSMS) has approved payment for the repurchase of part of the global bonds ("Tender Offer") on July 18, 2022.
This followed after the Company signed a syndicated financing facility agreement provided to the Company led by 2 national banks, namely PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) and PT Bank Syariah Indonesia (Persero) Tbk (BRIS) as a Joint Mandated Lead Arranger & Bookrunner (JMLAB) with a total credit loan value of IDR 3.6 trillion.
For information, SSMS opened the Tender Offer period for its global bonds on June 28, 2022 to July 8, 2022. The Company's Global Bond was issued through its subsidiary, SSMS Plantation Holding Pte. Ltd. in Singapore, valued at US$300 million on January 24, 2018.
SSMS CFO Jap Hartono said, "yesterday SSMS has completed its obligations related to the tender offer of the company's global bonds that have been issued by its subsidiaries. This step is very appropriate, we continue to innovate for business sustainability and provide the best for all stakeholders".
The settlement of global bonds is not entirely carried out, because the Company does it voluntarily for investors who want to make purchases faster. Payment of US$ 259.7 million from US$ 300 million or as much as 87% of investors have participated in the repurchase, the rest of the bonds that have not been willing to participate in the Tender Offer as much as 13% will remain valid until maturity, which is on January 23, 2023.
SSMS Corporate Secretary, Swasti Kartikaningtyas said, "We continue to carry out our obligation to pay the coupons of the Global Bonds and the remaining principal of the Global Bonds until the maturity time in January 2023. SSMS's performance is very positive, so we are confident in the Company's ability to continue to carry out its obligations".
Management has predicted that in the future performance will be optimal by carrying out this Tender Offer step, not only for business continuity, but to further develop the Company can compete in a dynamic and healthier palm oil industry.
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