Financing Expansion, Hermina (HEAL) Releases IDR 553 Billion Bonds

Salah satu RS Hermina. Foto: BeritasatuPhoto/IST

PT Medikaloka Hermina Tbk (HEAL) plans to issue Shelf-Registered Bonds I Phase II Year 2022 of IDR 553 billion at an offering price of 100% of the nominal value of the bonds. The fundraising action aims to expand the hospital's capacity.

The bond issuance is part of the company's public offering of Sustainable Bonds I with a total fund raised of Rp 1 trillion.

Medikaloka's Director of Finance and Strategic Development Hermina Aristo Setiawidjaja said that this bond offering will be guaranteed in full ( full commitment ) with a principal amount of Rp 100 billion through a choice of two series. For the Series A bonds, the company offers Rp 37 billion with an interest rate of 6.25% per year for a period of three years. Meanwhile, Series B is offered for Rp. 63 billion with an interest rate of 6.75% per year for a period of five years.

The company will guarantee the remaining offering for the principal amount of bonds of Rp 453.5 billion in best effort . guarantee best effort is not partially or completely sold, the remaining unsold is not the company's obligation to issue the bonds," said Aristo in a prospectus, Tuesday (28/6/2022).

It is planned that 40% of the proceeds from the bond issuance will be used to increase hospital capacity, which is not limited to land purchases. So far, Medikaloka Hermina is still in the stage of land identification so that the seller and the purchase value cannot be determined.

Furthermore, as much as 25% of the bond proceeds will be used to purchase general and medical equipment. The remaining funds will be used as working capital, including for payment of employee salaries, accounts payable, financing hospital operations, and others.

For the use of working capital for subsidiaries, the issuer with the stock code HEAL will disburse it through a shareholder's loan with an interest rate of 12.5% per year and a tenor of 1 year, which can be repaid at any time before maturity.

HEAL plans to hold a public offering of bonds on July 8-11, 2022. Then, the allotment date is estimated on July 12, 2022, electronic distribution of bonds and refunds of orders will be held on July 14, 2022, and listing on the IDX on July 15, 2022.

In this corporate action, HEAL appointed PT DBS Vickers Sekuritas Indonesia, PT Mandiri Sekuritas, and PT Maybank Sekuritas Indonesia as the underwriters for the bond issuance. Meanwhile, PT Bank Rakyat Indonesia Tbk is trusted as the trustee.