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Jasa Marga to offer Rp 1t in bonds
Publicly listed state toll-road operator Jasa Marga expects to raise Rp 1 trillion (US$85
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ublicly listed state toll-road operator Jasa Marga expects to raise Rp 1 trillion (US$85.2 million) in a bond offering with the proceeds intended for refinancing its existing bonds and bank loans.
About 70 percent of the proceeds would be used to repay its 2013 bonds and the remaining 30 percent to refinance bank loans, the company said in a public disclosure published on Tuesday.
The bond issuance is part of Jasa Marga's larger plan to raise Rp 5.95 trillion from the bond market. Last year, the company raised Rp 2.1 trillion from its first offering.
The debt papers, which would mature in five years, would offer a fixed 9.85 percent return per year for investors. The interest rates would be paid every three months, or quarterly, with the first payment taking place on Dec. 16 this year and the last on Sept. 16, 2019.
Mandiri Sekuritas has been appointed to underwrite this bond issuance, which are to be offered on Sept. 10 and 11, allotted on Sept. 12 and listed on the Indonesia Stock Exchange (IDX) on Sept. 17.
Jasa Marga's bonds got an idAA rating from ratings agency Pefindo.
'The rating reflects the company's dominant position in the toll road industry. It has stable toll road revenues, driven especially by an increase in traffic volume and a better tariff structure, while its profitability indicators and financial flexibility are strong,' the company wrote in the statement.
- About 70 percent of the proceeds would be used to repay the company's 2013 bonds
- The remaining 30 percent to refinance bank loans
- Bond issuance is part of Jasa Marga's larger plan to raise Rp 5.95 trillion from the bond market
Jasa Marga, which has a dominant 73.5 percent market share in tolls as it operates 576.1 kilometers (km) of the total 783.3 kms of toll roads existing across the country, reaped Rp 3.2 trillion in revenue from the business in the first semester of this year, up by almost 14 percent from the same period
last year.
From January through June, Jasa Marga saw 637.2 million vehicles passing over its toll roads across the country, a slight 2.7 percent increase from the 620.5 million in the same period last year, but also lower than the company's target because of floods that had disrupted road traffic, it said in the statement.
Jasa Marga is currently working on nine toll projects, including the Bogor Outer Ring Road and the Semarang-Solo, Surabaya-Mojokerto, Gempol-Pasuruan and Gempol-Pandaan connections, among others. The company is always seeking to acquire or develop new projects in order to expand and boost growth.
'The prospects of the toll road industry will remain sunny, especially with the government placing infrastructure development as one of its priority programs,' the company's statement reads.
Shares in Jasa Marga, which are traded on the IDX under the code JSMR, closed in Tuesday's trading at Rp 6,375 apiece, up 0.39 percent from the previous day. The stocks have surged 34.9 percent so far this year, outperforming the broader Jakarta Composite Index's (JCI) 21.7 percent gain. (est)
