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State-owned construction firm eyes Rp 7t from bond issuance
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State-owned construction firm PT Waskita Karya aims to obtain Rp 70 trillion worth of new contracts. (kompas.com/Ridwan Aji P.)
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tate-owned construction firm PT Waskita Karya will issue bonds to collect Rp 7 trillion (US$490 million) this year, said financial director Tunggul Rajagukguk in Jakarta on Tuesday.
“The bonds will be issued gradually from the first to third quarter of 2018,” said Tunggul as reported by kontan.co.id, adding that it was part of Rp 10 trillion in bonds that had been issued under the shelf registration issuance (PUB) since 2017.
The first bonds issuance worth Rp 3 trillion was held in September 2017.
To issue the debt papers, Waskita cooperated with several securities firms: PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas and PT Mandiri Sekuritas as guarantors.
PT Bank Mega will act as a trustee.
Tunggul explained the turnover from the bonds issuance would be used for working capital and investment — 80 percent for working capital and 20 percent for investment, particularly in the form of capital injections to its subsidiaries.
He said the bonds issuance would not press the company finance because the debt equity ratio (DER) was still under two times in December 2017. He expressed optimism that the DER would be much better this year because of accumulative profits.
In September, 2017, Waskita was warned that the DER should not exceed three to four times.
This year, the company targets to obtain Rp 70 trillion in new contracts. (bbn)
