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Hutama Karya eyes US$499 million from bond
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A crane operated by Hutama Karya works at a construction site in Jakarta, recently. (Kontan/Cheppy A. Muchlis)
S
tate-owned construction company Hutama Karya will issue Rp 6.5 trillion (US$499.71 million) of a bond in December to finance the Trans Sumatra toll road project.
Hutama Karya president director I Gusti Ngurah Putra said the bond will have a ten year maturity timeline, and the Indonesian government will act as the guarantor of the coupon payment since the proceeds will be used to finance the government's project.
"We will use the money for constructing the Trans Sumatra toll road," he said in Jakarta on Wednesday. The mega project is divided into 24 sections with a total length of 2,600 kilometers (km).
Hutama initially worked on eight sections of the toll road, totaling 800 km in length. However, Public Works and Public Housing Ministry in September assigned the company to handle another three sections with an additional 600 km in length.
To help fund the project, the company secured loans from state financing firm Sarana Multi Infrastruktur (SMI) worth Rp 1.8 trillion last November. (ags)
