PT WIKA finance director Adji Frimantoro and operations director III Destiawan Soewardjono signed a contract for the issuance of the medium-term notes with PT Mandiri Sekuritas and PT Bahana Securities as arrangers, the company said in a press statement released on Friday.
The three-year notes were issued on Wednesday (November 7) at a coupon of 9.80 percent, the statement said.
Proceeds from the issuance of the medium-term notes, due on November 5, 2017, will be used to develop the businesses of the companys subsidiaries and entities, including improving capital structure by restructuring short-term debts into medium/long-term debts, it said.
The funds will also be used to strengthen the working capital of the company and meet medium-term funding with competitive interest rate.
Local rating agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned its "idA+" rating (Single A Plus; stable outlook) for the companys general obligation rating for the 2013-2014 period.
The idA+ rating reflects that the company has strong capability to meet its long-term financial commitment.(*)