JAKARTA (TheInsiderStories) – Construction firm, PT Adhi Karya Tbk (IDX: ADHI) cut its local bond issuances from Rp2 trillion to Rp600 billion (US$42.85 million), said the company on Thursday (11/12). The notes have two series with three years tenure.
The prospectus wrote, bond with worth of Rp276.6 billion have three years tenure and coupon rate 9.75 percent. The remaining is guaranteed in the best possible way, so if its unsold will not become the company’ obligation to issue the bonds.
PT Pemeringkat Efek Indonesia rated the bond with idA- rating. Acted as joint lead underwriters are PT Bahana Sekuritas and PT Mandiri Sekuritas. Adhi Karya will conduct a bond public offering period on Nov. 13 with listing target on Nov. 19.
Half of the proceeds from the bond issuance will be used for capital expenditure and the rest for debt refinancing, working capital of light rapid transit projects, also other infrastructure projects.
On Oct. 10, CEO of Adhi Karya, Entus Asnawi Mukhson, said to hold PT Adhi Persada Gedung and PT Adhi Commuter Property’ initial public offering caused of the COVID-19 outbreak. The developer has also implemented a number of strategies to avoid the impact of the pandemic.
In 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.
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