Publicly listed smartphone distributor Tiphone Mobile Indonesia is offering Rp 700 billion (US$53.8 million) in bonds, the second issuance in its greater plan to raise Rp 2 trillion within two years.

The bonds will be offered in three series. The first one, Series A, is worth Rp 205 billion with a one-year tenure and 9.15 percent return. Meanwhile, Series B will total Rp 256 billion with a three-year tenure and 9.5 percent coupon rate. Series C is worth Rp 11 billion with a 10.65 percent yield and a five-year tenure.

“All proceeds, minus issuance fees, will be used by the company and its subsidiaries Telesindo Shop and Simpatindo Multi Media as working capital,” Tiphone Mobile wrote in a statement released on Friday, as reported by kontan.co.id.

Bahana Securities and Indo Premier Securities will act as standby buyers of the bond issuance, which secured an A rating from local ratings agency Pemeringkat Efek Indonesia (Pefindo). The offering period is scheduled for Oct. 11, allotment on Oct. 12 and payment on Oct. 13.

Source: The Jakarta Post