Obligasi Berkelanjutan II & Sukuk Mudharabah Berkelanjutan II Pindo Deli Tahap II Tahun 2026

Rating: idA+ (Pefindo) / irAA- (KRI)

Operating Resilience Holds, but Leverage and Liquidity Bear Watching

PT Pindo Deli Pulp And Paper Mills is one of Indonesia’s largest integrated pulp and paper producers, running three mills in Karawang, West Java and one in Perawang, Riau, with subsidiaries Lontar Papyrus in Jambi and MSS Holdings in South Korea. Installed capacity covers 1.1mn tonnes of pulp, 1.0mn tonnes of cultural paper, 1.2mn tonnes of tissue and 0.4mn tonnes of industrial paper, under brands including Bola Dunia, Paseo, Golden Coin and Mirage. Held 99.24% by PT APP Purinusa Ekapersada, it sits inside the Asia Pulp & Paper platform of the Sinar Mas group.

Indicative Structure

Obligasi: up to IDR2.5tn – Seri A (3Y) and Seri B (5Y)
Sukuk Mudharabah: up to IDR500bn – Seri A (3Y) and Seri B (5Y)
Coupon guidance: Seri A 9.50%-10.00%; Seri B 10.00%-10.50%, for the bonds and, as equivalent returns, the sukuk. Final coupons set 2 Oct 2026.
Clean basis (unsecured), quarterly coupon and profit share, bullet repayment at maturity.
Proceeds fund: repayment of Company borrowings and/or working capital; sukuk for refinancing.
Part of PUB II (Obligasi target IDR10.5tn, remaining IDR10.0tn; Sukuk target IDR2.0tn, remaining IDR1.5tn), Tahap II.

Why This Deal

idA+/irAA- credit on a fully integrated, four-mill platform, with margins stabilising. 1H2026 net sales declined 1.3% yoy to USD1,084.2mn, but gross margin improved from 26.3% to 27.0% and EBITDA rose 1.2% to USD232.4mn, with the margin up 53bp to 21.4% — a reversal from FY2025, when EBITDA fell 3.8% and the margin contracted 284bp. Revenue is well spread, with Indonesia at 35.0% of net sales, Asia ex-Indonesia 33.8%, the Americas 11.3% and Europe 6.8%, and profitability remains concentrated in pulp and cultural paper, which delivers 64.7% of group operating profit on 43.4% of revenue.
One of the widest carries available in the idA+ band. Secondary paper from peers such as Barito Pacific and Indah Kiat clears around 6.9%-8.5% YTM, with the ~3-year part of the curve near 8.35%-8.49%. Seri A guidance of 9.50%-10.00% pays roughly 105bp at the tight end and 155bp at the wide end over that reference. The top of the range matches Tahap I, which priced the 3-year at 10.00% in July 2026, so the issuer is asking for up to 50bp of tightening on both tenors. We prefer Seri A at the wide end of the range.
Refinancing-oriented print with covenants intact — coverage and cash cover are the watch items. Net profit rose 210% yoy to USD455.6mn, but associate equity income of USD212.5mn and net FX gains of USD140.2mn were together 74.3% of pre-tax profit, and the associate carrying value rose by almost exactly the equity income, so no cash was received. Net debt of USD1,884.9mn takes net debt/LTM EBITDA to 4.26x from 4.18x, with LTM interest coverage of 2.49x, and USD1,309.2mn of cash covers USD1,243.3mn due within twelve months only 1.05 times, down from 1.17x. Every FY2025 covenant was met — current ratio 1.93x (min 1x), DSCR 1.24x (min 1x), DER 0.80x (max 2.0-4.0x) — and the current ratio improved to 1.96x at 30 June 2026. Headroom is slim, which is why we prefer the 3-year tranche.