GoTo Will Get IDR 2,3 Trillion Injection Through Private Placement and Bonds

PT GoTo Gojek Tokopedia Tbk (GOTO) will receive an investment worth $150 million (around IDR 2,3 trillion). In detail, $100 million came from additional capital without granting pre-emptive rights (PMTHMETD) or private placement and the issuance of debt securities (bonds) of $50 million.

Quoting from disclosure on the Indonesian Stock Exchange, in the mechanism private placement This year, GOTO will issue 17,04 billion series A shares (representing 1,42% of all issued and fully paid shares) at a price per share of IDR 90. All shares will be acquired in full by Bhinneka Holdings (22) Limited, an independent entity established under the laws of the Cayman Islands.

"Through the issuance of these new shares, the Company will obtain funds amounting to IDR 1,53 trillion or the equivalent of $100 million," wrote GOTO management.

Then, GoTo International Finance Limited (GTIF) issued debt securities based on the Notes Subscription Agreement dated October 2 2023. This agreement was signed by and between GTIF as the issuer, GOTO as the guarantor, Bhinneka Holdings as the shareholder, and Citibank, NA Hong Kong branch as custodian.

From this transaction, GTIF will receive net funds of $50 million which can be used for working capital or other needs.

In further detail, Bhinneka Holdings obtained funds to acquire new shares of the company through the issuance of equity bond instruments to International Finance Corporation (IFC) and WAF Investments Cayman LLC, an entity owned by Franke & Company, an amount of $150 million can be exchanged for company shares owned by Bhinneka Holdings.

The company will use the funds from this raising to pay off the company's future debt through conversion and to support the working capital needs of GOTO and its subsidiaries. The details are as follows:

1. 25% of PMTHMETD funds for the Company;
2. 15% of PMTHMETD funds for PT Tokopedia;
3. 15% of PMTHMETD funds for PT Swift Logistic Solutions;
4. 15% of PMTHMETD funds for PT Dompet Anak Bangsa;
5. 15% of PMTHMETD funds for PT Multifinance Anak Bangsa;
6. 15% of PMTHMETD funds for PT GoTo Solusi Niaga (formerly PT Multi Adiprakasa Manunggal).

Official statement

In the company's official statement yesterday (3/10), GOTO management said that IFC made this investment to encourage financial inclusion and sustainability in Indonesia. The agreement also confirms our shared commitment to expanding the benefits of the digital economy and responding to the challenges of climate change.

"We are proud to partner with IFC, which is a leader in the field of sustainable development, in line with the mutual goal of both parties to realize a significant impact on society and the earth," said GoTo Group President Director Patrick Walujo in an official statement.

According to him, this partnership will provide further support for the GoTo business, in line with the company's steps in responding to the needs of users, including consumers, driver partners and traders, in meeting their needs and realizing their dreams.

IFC Country Manager for Indonesia and Timor-Leste Euan Marshall said that his party appreciates GOTO's leadership, as demonstrated through its commitment to responding to the challenges of climate change, as well as GOTO's contribution in opening jobs and sustainable economic growth.

"For us, this investment is an important contribution in expanding these efforts, and emphasizes the power that technology and digitalization have in improving the standard of living of people throughout Indonesia," said Marshall.

This partnership includes non-financial components to support companies in the transition of technology partners towards the use of electric vehicles, improve operational efficiency, and integrate various sustainable business practices to achieve a carbon neutral business.