Salim Ivomas Issues IDR 1 trilion Bonds

PT Salim Ivomas Pratama plans to issue IDR1 trillion rupiah bond to enhance the company's capital structure and financial condition.
Salim Ivomas is a business unit of Indofood Agri Resources Ltd (IndoAgri), a subsidiary of PT Indofood Sukses Makmur Tbk with an interest in the sugar industry. A 90% stake in Salim Ivomas is owned by Indofood Oil & Fats Pte Ltd, a business unit of IndoAgri, which holds 100% share in Indofood Oil and Fats.
Indofood controls a 69.4% stake in IndoAgri via Indofood Singapore Holdings Pte Ltd, in which Indofood seizes an 83.8% stake. In IndoAgri, Sariaatmadja controlled a 6.8% stake and the public seized a 23.8% stake through stock listing on the Singaporean bourse.
Chief Executive Officer of IndoAgri Mark Julian Wakeford revealed Salim Ivomas was in the process of sounding IDR1 trillion rupiah bond issuance.
"However, we have yet had any plan when the bond issuance would be realized. This depends on the market situation and condition. If Salim Ivomas continues the plan, the fund raised from the bond issuance will be used to refinance the group's debt," he explained in an information expose on the Singapore Stock Exchange yesterday.
Wakeford added he would inform further when the bond issuance would be realized.
When asked for confirmation, Vice President Director of Indofood Fransiscus Welirang said he didn't known about the bond issuance plan.
"I have just known it from you. Salim Ivomas is a subsidiary of IndoAgri and they have a separate management with Indofood," he said.
Fransiscus explained the bond issuance probably was part of the group's efforts to refinance its debts and restructure short-term debts to long-term ones, just like the strategy run by Indofood.
When asked for confirmation about the impacts of the bond issuance on Indofood's performance, he said Salim Ivomas was a separate entity from Indofood.