TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Jasa Marga issues Rp566 billion in short-term commercial papers
The debt paper issuance enables the company to maintain its short-term cashflow while offering a competitive return for investors at a rate of 6.8 percent.
Change Size
The Jakarta-Cikampek toll road is operated by Jasa Marga. (Antara/Fakhri Hermansyah)
S
tate-owned toll road operator PT Jasa Marga has issued Rp 566 billion (US$38.44 million) worth of commercial papers (SBK) with a one-year maturity to provide additional capital and for its running projects.
“The funds we received today could cover Jasa Marga’s working capital, including for capital expenditures,” Jasa Marga corporate finance group head Eka Setya Adrianto said in a statement on Wednesday.
Eka said the debt paper issuance enabled the company to maintain its short-term cashflow while offering a competitive return for investors at a rate of 6.8 percent, which is higher than the current Jakarta Interbank Offered Rate (JIBOR) of 4.7 percent.
Jasa Marga’s commercial papers have also received an idA1+ grade from Indonesian rating agency PT Pemeringkat Efek Indonesia, the highest rating category.
Eka said the SBK could also be used by Jasa Marga as bridge funding before the company issued long-term financing schemes such as corporate bonds or other capital market instruments.
“We remain open to the possibility of issuing other products, whether from the capital market or money market, as an alternative funding scheme for the company. Through these alternative schemes, Jasa Marga could expand the number of investors that are involved in Indonesia’s toll road development,” he said.
The company issued Rp 2 trillion worth of conventional bonds in September, which was oversubscribed by Rp 700 billion. The Jasa Marga Conventional Bond II was issued to fund toll road maintenance, carry out service upgrades and increase working capital.
As of June 30, Jasa Marga has Rp 42.2 trillion worth of long-term debts from banks, a 90 percent year-on-year (yoy) increase, according to the company’s financial report published on the Indonesia Stock Exchange (IDX) website.
Jasa Marga’s financial report also shows that the company’s debt-to-equity ratio increased to 3.3 from 3.1 in the same period last year. The company sets the maximum debt at five times its equity.
