Select Page

Hi Calvin,
 
One thing for sure is that First Resource is shielded from any spike of interest rate (at least till its maturity date) in the near future since the notes were issued based on fixed rate of around ~4.5%. Should there margin calls among the banks, investors should still be able to sleep soundly at night. 
 
On one note, if you looked at the history of the company’s leverage platform, FR used to issue Rupiah bonds at 11.5% rate and convertible loans (dilute shareholders interest if converted). From management’s perspective, the notes are relatively more favourable than its precedent loans.