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Snack maker issues Rp 250b bonds to finance expansion
Team bonding: PT Siantar Top president director Pitoyo (right) chats with the companyâs director Armin (center) and commissioner Juwita Wijaya after a press conference on the companyâs plan to issue bonds, in Jakarta on Wednesday
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Team bonding: PT Siantar Top president director Pitoyo (right) chats with the companyâs director Armin (center) and commissioner Juwita Wijaya after a press conference on the companyâs plan to issue bonds, in Jakarta on Wednesday. The company aims to collect a total of Rp 1 trillion from bonds sales. (JP/Nurhayati) (right) chats with the companyâs director Armin (center) and commissioner Juwita Wijaya after a press conference on the companyâs plan to issue bonds, in Jakarta on Wednesday. The company aims to collect a total of Rp 1 trillion from bonds sales. (JP/Nurhayati)
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span class="inline inline-none">Team bonding: PT Siantar Top president director Pitoyo (right) chats with the company's director Armin (center) and commissioner Juwita Wijaya after a press conference on the company's plan to issue bonds, in Jakarta on Wednesday. The company aims to collect a total of Rp 1 trillion from bonds sales. (JP/Nurhayati)
Indonesian snack company PT Siantar Top plans to issue bonds worth about Rp 250 billion (US$21.5 million) this year to finance the expansion of its food and beverage business.
The company's director Armin said in Jakarta on Wednesday that the bonds would be part of debt papers worth about Rp 1 trillion that the company plans to sell within the next two years.
He said that the Rp 250 billion bonds would comprise Series A bonds with maturity of one year and Series B bonds with maturity of three years, which will respectively offer a return of 9.90 percent to 11.1 percent, and 10.8 percent to 12 percent per year.
The bonds will be offered to the public this week. The bonds received an idA (single A) rating from Indonesian rating agency PT Pemeringkat Efek Indonesia (Pefindo).
Armin said that the funds raised from the bond offering would be used to finance the company's expansion in the production of snacks and biscuits.
According to Armin, this year the company would need between Rp 400 billion and Rp 500 billion to finance its expansion plan. He said that part of that amount would be financed by bank loans.
Armin said that the amount of funds to be raised from the bonds was lowered from the initial plan of Rp 600 billion. 'The market conditions are not so conducive, because there will be elections this year. So, we decided to raise only Rp 250 billion from bond sales,' he added.
'We will add [to] our factories, including constructing a new coffee mill,' Armin told reporters, adding that the company has recently entered the coffee business and therefore needs to build a new factory in Tambak Jabon, Sidoarjo, this year.
The company will also keep modernizing its equipment to meet increasing demand among consumers for better products, according to Armin. 'We will also import machines from Europe to support the modernization program,' he added.
Siantar Top has appointed security company PT Mandiri Sekuritas to underwrite the bond issuance.
In 2013, Siantar Top booked a net profit of about Rp 111 billion, rising by about 50 percent from Rp 74 billion in 2012. The company's revenue also rose by about 85 percent to Rp 1.7 trillion in 2013, from Rp 916 billion in the previous year.
Armin hoped revenue would further increase to Rp 2.4 trillion this year. 'We are upbeat that we can achieve our target this year,' he said.
Headquartered in Sidoarjo, PT Siantar Top produces various kinds of biscuits, crackers and noodles at its six factories, which are located in Sidoarjo, Bekasi (West Java), Medan (North Sumatra) and Makassar (South Sulawesi). (alz)
