JAKARTA (TheInsiderStories) – Indonesian toll-road developer, PT Jasa Marga Tbk (IDX: JSMR) pursues funding of up to Rp3 trillion (US$212.76 million) for the rest of the year, the management told to media on Tuesday (11/05). It will be obtained from the issuance of a sharia asset-backed securities investment collective contract of Rp2 trillion and an infrastructure investment fund of Rp1 trillion.
Donny Arsal, Jasa Marga Finance Director, said that the company will use the Jakarta Outer Ring Road toll road as the underlying asset-backed securities collective investment contract. Meanwhile, for the infrastructure investment fund instrument, they will use one of the sections in the Trans-Java toll road as the underlying.
The company’s head of finance group Eka Setya Adrianto added they hope to be able to issue infrastructure investment funds in the fourth quarter of 2019. As for the sharia asset-backed securities collective investment contract, the company also hope to execute this year.
“The fatwa on the issuance of a collective investment contract for asset-backed securities has been issued since the end of last year, but we have not yet processed because we are exploring market demand,” he said.
Initially, Jasa Marga also considered the issuance of zero-coupon bonds. However, this plan has not become an option in the near future because the bond pricing tends to be expensive.
The funds raised will be used to pay for a turnkey project worth of Rp10-20 trillion next year. While this year, the company is targeting the completion of a number of toll road projects.
One of them is the Jakarta-Cikampek II flyover which will function in December 2019. Furthermore, there is the Singosari-Malang section of the Pandaan-Malang toll road project whose construction progress has reached 97.76 percent, the Balikpapan-Samarinda toll road has 96.91 percent completed, and the Serpong-Kunciran toll road has been 100 percent completed.
As of the third quarter of 2019, Jasa Marga has successfully operated 1,041 km of toll roads with the addition of 41.46 Km of new toll roads in 2019. Furthermore, the company successfully recorded EBITDA of Rp5 trillion in the third quarter of 2019, growing by 16.9 percent compared to the same period last year of Rp4.28 trillion.
For non-construction business revenues, Jasa Marga recorded Rp7.96 trillion, increase by 11.6 percent from the third quarter of 2018. Growth was supported by toll revenue contribution of Rp7.36 trillion, which grew by 10.9 percent compared to the third quarter- 2018.
The construction of new toll road sections has contributed to the growth of assets in terms of the company’s toll road concessions so the company’s total assets in the third quarter of 2019 were recorded at Rp94.27 trillion or grew by 14.4 percent from 2018.
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