PT Cikarang Listrindo Tbk (POWR) is looking to raise $550 million through a corporate bond to repay its previously issued notes, as well as increase cash flows.
The notes, launched in 2012 by Cikarang’s subsidiary Listrindo Capital, has 6.95 per cent coupon and will mature in 2019.
According to an official prospectus, the company will offer the new bonds to international investors. Subsequently, these bonds will be listed on the Singapore Stock Exchange (SGX).
“The coupon will be set at maximum 8 per cent,” management of Cikarang Listrindo said in the statement.
Cikarang Listrindo raised Rp 3.75 trillion ($275.74 million) when it went public in May, selling 2.5 billion shares at Rp 1,500 apiece, and becoming the country’s first independent power producer to list on the bourse.
The final IPO price equals 7.3 times EV/EBITDA (enterprises value divided by earnings before interest, tax, depreciation and amortization) for the financial year or price to earning at 12 times of 2017 earnings.
The West-Java based firm plans to use the proceeds to expand its generation capacity and other general corporate purposes. Last year, Cikarang Listrindo and General Electric inked a $600-million deal for power plant developments, during President Joko ‘Jokowi’ Widodo’s visit to the US.
In order to cope with increasing electricity demand, Cikarang is building a new 280 MW coal-fired power plant that is expected to complete by the end of this year. Completion of the new plant will boost the company’s total installed capacity by 32% to 1,145 MW.