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State builder Adhi Karya issues Rp 3.5t bonds
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Adhi Karya president director Budi Harto (third right) poses with other board of directors in Jakarta on May 24. (JP/Prima Wirayani)
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tate-owned builder PT Adhi Karya is offering bonds worth a maximum of Rp 3.5 trillion (US$262.9 million) and totaling Rp 5 trillion under the first phase of its shelf offering II for the next two years.
The debt papers, with a book building period of May 24 to June 8, will have a five-year tenure and a yield range of between 8.75 percent and 9.5 percent per annum, payable quarterly.
The publicly listed firm has appointed securities firms PT Bahana Sekuritas, PT BCA Sekuritas, PT Danareksa Sekuritas and PT Mandiri Sekuritas as underwriters.
Funds from the bonds will be used to strengthen the firm's capital injection into its subsidiaries and refinance bonds.
"As much as Rp 800 billion will be used to pour [capital] into our subsidiaries PT Adhi Persada Gedung and PT Adhi Persada Beton," Adhi Karya director Haris Gunawan said during a public expose in Jakarta on Wednesday.
The bonds are rated A- by credit ratings agency PT Pemeringkat Efek Indonesia (Pefindo).
"We will issue the remainder of the shelf offering either in the second half of next year or 2019's first half depending on our fund requirement at the time," Haris said.
As of April, Adhi Karya has booked Rp 4.4 trillion worth of new contracts.
"Our contract portfolio is still dominated by government and state-owned enterprises [SMEs], at 24.4 percent and 36.4 percent, respectively," said Adhi Karya president director Budi Harto. (bbn)
