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Shipping companies seek public funding to finance expansion
Publicly listed companies PT Buana Lintas Lautan and PT Humpuss Intermoda Transportasi will issue right shares and bonds respectively to raise funds to finance their expansion projects.
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Brokers monitor the trading of bonds and other debt papers at the Bank Rakyat Indonesia Treasury building in Jakarta. (kompas.com/Hendra A Setyawan )
Riska Rahman
The Jakarta Post/Jakarta
Publicly listed shipping companies are seeking extra funding through the issuance of bonds and other capital market instruments to finance their business expansion projects.
Shipping companies PT Buana Lintas Lautan and PT Humpuss Intermoda Transportasi have each secured approval from their respective shareholders to issue right shares and bonds to raise additional funds for financing their expansion projects this year.
During a general shareholders meeting on Thursday, Buana Lintas Lautan’s shareholders approved the company’s plan to issue right shares to raise fresh funds for an expansion. Commercial director Henrianto Kuswendi said the company planned to issue 3.4 billion new shares, which will account for 31.78 percent of its enlarged shares.
“We expect to rake in Rp 935 billion [US$66.12 million] from the rights issue, which will later be used to expand our fleet,” he said, adding that he hoped the right issue would be conducted next month after it received the green light from the Financial Services Authority (OJK).
He further explained that the company planned to buy 16 more oil and gas tankers this year as part of its plan to focus more on oil and gas transportation. Currently, the company owns 13 oil tankers, three gas tankers, one floating production storage and offloading (FPSO) unit and one chemical tanker.
