Soechi Lines to issue $200m bonds for refinancing, buying new vessels

Visual from the SochiLines website

PT Soechi Lines Tbk, Indonesian largest private tanker operator, is planning to issue five-year US dollar bonds worth $200 million in the second half of 2015 which will be traded on the Singapore Exchange Securities Trading Limited (SGX-ST).

Finance Director of Soechi Paula Marlina said the bonds will be used for a repayment of debts, purchase of new tanker vessels and to strengthen working capital. “But we can’t disclose the underwriter and the interest rate,” she said in Jakarta.

According to her, this year is the right moment to issue the bonds at the dollar still strengthens compared to rupiah. The total number of loans of Soechi amounts to $180 million of which 35 per cent is in rupiah currency. Marlina, however, denied to comment on how much is the overdue debts that will be repaid this year.

Marlina said the portion of the proceeds will be used to purchase one or two additional tanker vessels at the end of 2015.  In the first quarter of 2015, the management has bought two units of gas tanker and in the last December of 2014 three units of ships. At the end of 2015, Soechi Lines operates as much as 37 unit vessels.

The tanker operator executives and the bond issuance underwriter have recently conducted roadshows to meet with potential investors in Singapore, Hong Kong and London this month. Soechi Lines has mandated Deutsche Bank as sole bookrunner for meetings with fixed-income investors ahead of a debut offering of US dollar bonds.

The company benefits from having had a long-standing relationship with state-owned oil company PT Pertamina, which accounted for more than half of revenues last year.

Also Read: Lippo Malls Indonesia Trust raises S$75m through bonds

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.