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Jakarta Post

Hutama Karya’s $600 million global bonds oversubscribed by sixfold

  • Yunindita Prasidya and Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, May 6, 2020   /  01:06 pm
The Jakarta Post Image
A section of the trans-Sumatra toll road, which will span more than 2,700 km upon completion, the longest toll road in Indonesia.(Courtesy of Hutama Karya/-)

State-owned construction company PT Hutama Karya has raised about US$600 million from the issuance of its global bonds to partly finance its toll road projects in Sumatra. Hutama Karya president director Bintang Perbowo said in Jakarta on Tuesday the bond offering was oversubscribed by sixfold despite the COVID-19 pandemic, which has caused uncertainty in the financial markets. The response of global investors to the company’s first ever global bonds was quite positive, indicating that the bonds issued by Indonesian corporations, especially state-owned enterprises, are still considered a good investment, he said. The proceeds from the issuance of the 10-year bonds with a yield of 3.75 percent will be used to fund the development of the trans-Sumatra toll road project, which requires total investment of about Rp 280 trillion (US$18.52 billion). According to the company, ...