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.