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Hutama Karya issues Rp 1t bonds, pushes trans-Sumatra project
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Manufacturing opportunities: A crane is in operation at a Hutama Karya construction site in Jakarta. The company plans to issue a series of bonds worth a total of Rp 6.5 trillion until 2018 to finance the construction of sections for the trans-Sumatra toll road. (Kontan/Cheppy A. Muchlis)
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tate-owned construction company Hutama Karya is set to issue bonds worth Rp 1 trillion (US$74.9 million) as part of a bigger plan to sell Rp 6.5 trillion worth of debt papers until 2018 to help finance the construction of the trans-Sumatra toll road.
The bonds offered in the initial stage have a maturity period of 10 years and a coupon rate of 8.2 to 8.65 percent based on the government bond FR 056 series. Coupon payments would be made quarterly, Budi Susanto, director of Danareksa Sekuritas, told reporters in Jakarta on Wednesday.
“FR 056 currently yields 7.9 percent plus 30 to 75 basis points, which means [the coupon rate is] 8.2 to 8.65 percent at this time. It’s true that the figures might fluctuate, but we hope it stabilizes as the global market improves,” he said.
Hutama Karya plans to issue bonds worth another Rp 2.5 trillion in 2017 and Rp 3 trillion in 2018, finance director Anis Anjayani said.
The book building period for the upcoming bond runs from Nov. 16 to Nov. 29 and the offering period will be from Dec. 14 to Dec. 15. The bonds, rated idAAA by ratings agency Pefindo, are slated to be listed on the Indonesian Stock Exchange (IDX) on Dec. 21.
The firm has appointed Bahana Securities, Danareksa Sekuritas and RHB Securities Indonesia as underwriters for the bond issuance.
Hutama Karya is currently prioritizing the development of eight sections of the trans-Sumatra toll road totaling 645 kilometers in length, which are expected to commence operation by 2019. (win/hwa)
