Energi Mega Persada to Issue Rp 500 Billion Bonds

Corporate Action Overview

PT Energi Mega Persada Tbk (ENRG), an Indonesian energy company, has announced plans to issue Sustainable Bonds I Phase I 2025 worth up to Rp 500 billion. This bond issuance is part of the company's broader Rp 4 trillion Public Offering Program. The bonds will be offered in three separate series, each with different tenors and coupon rates.

Bond Structure and Pricing

The bond offering consists of three series:

• Series A: 1-year tenor with coupon rates between 6.75%-7.25% per annum
• Series B: 3-year tenor with coupon rates between 7.50%-8.25% per annum
• Series C: 5-year tenor with coupon rates between 8.50%-9.25% per annum

The bonds have been assigned a idA+ rating by Pefindo, indicating strong creditworthiness and low default risk.

Use of Proceeds

The company plans to utilize approximately 24.82% of the bond proceeds for early repayment of existing debt to KCS1 Pte. Ltd., including principal and interest. The remaining funds will likely be allocated to other corporate purposes as outlined in the offering documentation.

Market Implications

This bond issuance demonstrates ENRG's proactive approach to managing its debt profile and capital structure. The attractive coupon rates offered, particularly for the longer tenor bonds, reflect the company's credit standing and market confidence. The successful execution of this bond offering could potentially enhance ENRG's liquidity position and provide financial flexibility for future business initiatives.