Pupuk Kaltim to Issue Bonds

VIVAnews - Fertilizer company PT Pupuk Kaltim (PKT) is looking into a chance to issue bonds mostly for financing the development of coal boiler amounting to US$120 million.

"We're seeking the best mechanism," Pupuk Kaltim Managing Director Hidayat Nyakman said after signing a joint venture agreement with PT Petrokimia Gresik and Jordania Phospat Mines Co Ltd on Monday, Jan 11.

According to Hidayat, 70 percent of the US$120 million fiinancing will use loans from PT Bank Rakyat Indonesia Tbk, while the remaining fund will be acquired through bond issuance.

Hidayat did not say anything about the issuance day.

This year, PKT is planning to allocate fund by US$240 million, which will be used for setting up coal boiler worth US$120 million, improving fertilizer capacity (US$20 million), developing oil palm plantation and building PKT 5.

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Translated by: Bonardo Maulana Wahono