The publicly listed firm will offer debt papers amounting toRp 1.66 trillion (US$124.4 million) as part of its shelf offering (PUB) II totaling Rp 5 trillion. It will be the third issuance after the first and second phases, worth Rp 2 trillion and Rp 900 billion, respectively, carried out last year.

In the forthcoming bonds issuance, the company will offer two series of bonds, the A and B series worth Rp 747 billion and Rp 910 billion, respectively. The A series will mature in three years with an 8.5 percent yield, while the B series’ tenure is five years with a 9 percent yield, according to a prospectus submitted to the Indonesia Stock Exchange (IDX).

The offering period will run from Feb. 15 to 16 while the allocation date is slated for Feb. 17. The bonds will be listed on the stock market on Feb. 22.

“All funds raised from the issuance, after deducting the cost of funds, will be used for working capital and investments,” the prospectus read.

Waskita Karya is targeting a minimum of 60 percent growth in both its net profit and revenue by year-end, the firm’s president director M. Chaliq said recently. “We aim to book Rp 2.8 trillion in bottom line [profit] and almost Rp 40 trillion in top line [revenue],” he said.

The company’s third-quarter financial report last year showed that its revenue jumped by almost 90 percent year-on-year (yoy) to Rp 14 trillion. Its net profit soared by more than 133 percent to Rp 16.19 trillion.

It plans to allocate Rp 30 trillion of capital expenditure (capex) this year, which will be sourced from bank loans, bond offerings and medium term note (MTN) issuance. Most of the capex will be used to construct the trans-Java and trans-Sumatra toll road projects.

Previously, the firm strengthened the capital of its third-tier subsidiary toll road company PT Pejagan Pemalang Toll Road with a Rp 3.8 trillion capital injection.

It also established PT Citra Karya Jabar Tol, in which Waskita Karya subsidiary PT Waskita Toll Road (WTR) owns 15 percent of shares worth Rp 150 million. “Investment in toll road projects has become Waskita Karya’s key growth driver,” Danareksa Sekuritas analyst Maria Renata wrote in a research note.

In that regard, the firm currently owns toll road concessions covering 750 kilometers, directly and indirectly, through its subsidiary WTR. With that, Waskita Karya is now the second-top firm in terms of toll road concession, behind Jasa Marga which has a toll road concession of 1,261 km.

Waskita Karya’s divestment of a 29 percent stake in WTR, worth Rp 3.5 trillion, also provided much needed equity to develop 15 toll road projects, Mandiri Sekuritas analyst Bob Setiadi wrote in a research note.

“The divestment would also enable WTR to participate and/or initiate new toll road projects, which eventually would provide more new contracts to Waskita Karya,” he added.

With the additional equity, WTR’s capital has swollen to between Rp 8 trillion and Rp 9 trillion, allowing it to be more active in developing current projects and bidding for new toll roads.

M. Chaliq said his firm aimed for Rp 65 trillion to Rp 70 trillion worth of new contracts this year, a similar amount to last year.

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