Oki Pulp & Paper Mills Issues IDR 1 Trillion Sukuk Mudharabah to Refinance Debt Payments 

Indonesian manufacturer Oki Pulp & Paper Mills, which is part of Asia Pulp & Paper, Sinarmas Group, has announced plans to issue IDR 4 trillion worth of debt securities, comprising IDR 3 trillion in Phase I bonds and IDR 1 trillion in Sukuk Mudharabah Phase 1 (Sukuk) in 2021 to refinance debt payment and business development purposes. Pemeringkat Efek Indonesia (Pefindo) has assigned a national rating for PT Oki Pulp & Paper Mills' long-term debt securities at idA+ and idA+(sy).

Why it Matters?

Around 40% of the funds raised from the Sukuk and bonds issuance will be used for debt installment payments while 15% will be used for capital expenditures for purchasing machinery and equipment for pulp, tissue and chemicals, civil works and infras...