Obligasi Berkelanjutan VI Indah Kiat Pulp & Paper Tahap III Tahun 2026

Indonesia’s Paper Bellwether Reprices 300bp Wider in Five Months

PT Indah Kiat Pulp & Paper (INKP) is Indonesia’s largest integrated pulp and paper producer and the flagship listed vehicle of the Sinar Mas / Asia Pulp & Paper group, running fibre-to-paper operations across pulp, industrial paper, cultural paper and tissue. It is 57.46% owned by PT APP Purinusa Ekapersada, with a 42.54% public float, and booked USD3.17bn of net sales in FY2025 across a broad export footprint – the market position, vertical integration, and product and customer diversity that Pefindo cites directly in the idA+ rating, stable outlook.

Indicative Structure

Obligasi: up to IDR1,500.0bn – Seri A (3Y) 9.50%-10.00%, Seri B (5Y) 10.00%-10.50%
Clean basis (unsecured), quarterly coupon, bullet repayment at maturity.
Issued under the IDR10tn Shelf-Registered Bond VI 2026 programme, rated idA+ by Pefindo.
Proceeds fund: working capital and refinancing of maturing bonds and sukuk – a refinancing-oriented issuance, not new capex.

Why This Deal

idA+ credit built on scale, vertical integration, and a Sinar Mas sponsor. Pefindo’s rating rests on INKP’s very strong market position and fibre-to-paper integration, and FY2025 showed the profit engine still working: net sales of USD3.17bn slipped 0.6% YoY, yet operating profit rose to USD667.7mn on a 21.1% margin and net profit gained 6.8% to USD453.3mn, with equity closing at USD6.84bn on USD12.34bn of assets.
Top line flat, and the balance sheet runs hot by design. Revenue has gone sideways for two years and the FY2025 earnings gain came from cost and mix rather than volume. Gross borrowings of IDR81.3tn against IDR58.0tn of cash leave net debt near IDR23.3tn, roughly 1.6x EBITDA on our estimate, and INKP is a structural repeat issuer – this is the third rupiah tranche of 2026 alongside a USD100mn shelf, on top of IDR2.35tn of principal already retired in July.
A repriced entry point, roughly 300bp wider in five months. INKP’s own 3-year coupon has moved from 6.50% at Tahap I in March to an indicative 8.25%-9.25% at Tahap II and 9.50%-10.00% today, against a 3-year IGS that has barely moved. The wide end of Seri A clears a near double-digit coupon for an idA+ name on stable outlook, and with only a 50bp step from Seri A to Seri B the curve pays little for the extra two years, leaving the value at the short end unless the book forces the issue.