on (US$136.05 million) from bond market in this year - Photo: Special

JAKARTA (TheInsiderStories) – State-owned construction firm, PT Adhi Karya Tbk (IDX: ADHI) seeking funds up to Rp2 trillion (US$136.05 million) from bond market in this year. Most of the proceed will uses for capital expenditures, debt refinancing, and for working capital.

The offering period starts on Oct. 12 to 23, the effective date on Nov. 4, public offering period is Nov. 6 – 9, and listing on Nov. 13. Acted as joint lead underwriters for the bond issuance are PT Bahana Sekuritas and PT Mandiri Sekuritas and have received an idA- rating from PT Pemeringkat Efek Indonesia.

On Saturday (10/10), CEO of Adhi KaryaEntus Asnawi Mukhson, said to hold PT Adhi Persada Gedung and PT Adhi Commuter Property’ initial public offering caused of the COVID-19 outbreak. The company has also implemented a number of strategies to avoid the impact of the pandemic.

Last July, the builder and other state-run firm, PT Brantas Abipraya formed a joint venture, PT Jalintim Adhi Abipraya, to work on the preservation project for Jalan Lintas Timur in Sumatra. The project use a government cooperation scheme and this business entity with estimated to cost Rp982 billion.

According to data from the public works and public housing minitry, the project is currently in the stage of basic design approval by the project manager and the finalization of business documents. In this joint venture, Adhi Karya holds a 60 percent stake while the remaining is owned by Brantas Abipraya. The authorized capital of this joint venture is set at Rp100 billion with a paid-up capital of 25 percent.

The ministry noted the toll road project is divided into three sections. The first section covers the Simpang Kayu Intersection – Pelalawan Regency Boundary (3.6 kilometers). Then, the second section Pelalawan Limit – Sikijang Mati (9.10 kilometers) and the third section Sikijang Mati – Lago Intersection with a total length of 43 kilometers.

In the first semester of 2020, Adhi Karya posted a net profit Rp11.27 billion or decreased 94.76 percent from the same period in 2019 worth of Rp215 billion. The issuer also pocketed Rp5.52 trillion in revenues or only rose 1.86 percent in annual basis Rp5.42 trillion.

US$1: Rp14,700

Written by Editorial Staff, Email: theinsiderstories@gmail.com