JAKARTA (TheInsiderStories) – PT Adhi Commuter Properti, unit of state-owned construction firm, PT Adhi Karya Tbk (IDX: ADHI), seeks fresh funding around Rp500 billion (US$35.46 million) from the bond market in the first quarter of 2021, said the management. The company, which is engaged in the transit-oriented development (TOD) businesses, will use the proceeds for land acquisition.
As quoted by local media, the director, Hanif Setyo Nugroho, said the bond will separates in two series. Acted as an underwriter for the bond issuances is PT Succor Asset Management.
Currently, Adhi Commuter in the process to build the second phase of the the town city in Sentul, West Java, collaborating with private company, PT Sigma Eltra Propertindo. The other ongoing TOD projects are located in Jakarta, Bekasi, Cisauk Point, and Grand Central Bogor in West Java.
Beside the bond issuances, the parent also has prepared the property company to list its share in this year with target proceed around Rp1.5 trillion. Finance Director of Adhi Karya, Agung Dharmawan, said, the unit is targeting to hold the initial public offering (IPO) in June of 2021.
Adhi Commuter engaged in property, town management and infrastructure support, starting from the establishment of the TOD as one of the company’ divisions. Dharmawan said all the fresh funding from the IPO will be used to finance projects being worked on by the subsidiary.
As a group the constructor has a number of projects that are being worked on, like Binjai – Langsa toll road construction project, the Jogja – Solo – Kulonprogo toll road, Jakarta Lingkar Dalam toll roads, Cikunir – Ulujami Elevated Ring Road Toll, and construction projects through PT Adhi Persada Building.
In addition, there are industrial projects through PT Adhi Persada Beton, property projects through PT Adhi Persada Properti and Adhi Commuter, as well as water management and waste management projects. To increase the expansion funds, the issuer through its subsidiaries, will also issue medium term notes worth of Rp500 billion in this year and in 2021, before the IPO of ACP, the constructor to issue another debt securities again.
“We still have an investment allocation of around Rp1 trillion, which will be diverted from this year to next year. We will also to issue debt securities to fund the capital expenditure (needs),” adds by the director.
As of September 2020, Adhi Karya has booked a new contract of Rp6.2 trillion, fell by 18.4 percent from the same period the previous year. From the contracts, the company generated revenue of Rp8.5 trillion. He said, the revenue mostly contributed by the construction and energy sectors, around 79.5 percent, property 13 percent, and industry 7.5 percent. The net profit also decreased by 95.6 percent to Rp15.6 billion in nine months of this year.
Starting from an effort to contribute to providing a solution to congestion problems in Greater Jakarta, ADHI was assigned to build the light rapid transit (LRT) and created new entity, Adhi Commuter. Starting from the establishment of the TOD and hotel department in May 2016, the TOD developer became a subsidiary in July 2018.
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