JAKARTA (TheInsiderStories) – Dana Investasi Infrastruktur (DINFRA) Toll Road Mandiri plans to lift its asset portfolio by buying shares of PT Jasamarga Gempol Pasuruan from the parent, PT Jasa Marga Tbk (IDX: JSMR), said the management. The plans will be submitted at unit holders meeting on Dec. 14.
DINFRA is a vehicle in the form of collective investment contract that used to gather funds from the investing public used for investment in infrastructure assets. These investment products are intended to provide a funding alternative for construction of infrastructure in Indonesia through securitization of infrastructure assets, and at the same time to provide an alternative investment product for investors.
PT Mandiri Manajemen Investasi is the investment manager of DINFRA. It said, the maximum number of shares to be acquired is 71.81 million shares or equal to 59.35 percent of the total enlarged capital and fully paid by Jasa Marga in the operator of Gempol – Pasuruan toll road, East Java.
The toll roads manager currently owned 99.3 percent of the subsidiary’ shares. The Gempol – Pasuruan toll road has a length of 34 kilometers (km) and the concession up to 2058. As of September 2020, the transaction volume on this toll road has reached 4.3 million vehicles with revenues of Rp142.2 billion.
DINFRA was listed on the Indonesia Stock Exchange in April 15, 2019. The instrument managed to raise Rp1.1 trillion of funds. The Mandiri Investasi’ product has received permission from the Financial Service Agency since October 2018.
The portfolio assets has been purchased is Jasamarga Pandaan Tol. The toll road connects the Surabaya – Gempol and the Pandaan – Malang toll road, which has a concession period of 37 years and has been operating since 2015.
Jasa Marga targeting to operates 1,292 km of toll roads by 2021. Currently, the builder operated around 1,191 km of toll roads with a total concession length of 1,527 km. Finance Director, Donny Arsal, said, the issuer will add another 27.85 km of toll road from the Jakarta – Cikampek II toll road construction project in 2021 to along 1,292 km.
The operator still pocketed 236 kilometers of toll projects will develop later, he adds. The toll roads will build after 2021 which are consists of the Bogor Ring Road Section IIIB (2.25 km), Jakarta – Cikampek II Selatan (34.15 km), Probolinggo – Banyuwangi (172 km), and Ngawi – Kertosono (27.90 km).
In this year, the developer to operates of 102 km of toll roads consisting of the Pandaan – Malang (2.97 km), JORR2 Cinere – Serpong (10.14 km), JORR2 Kunciran – Cengkareng (14.19 km), Balikpapan-Samarinda (33.12 KM), Manado – Bitung (39 km), and Bogor Ring Road (2.65 km).
He continued, Jasa Marga also has operates the Pandaan – Malang toll road Section V since June 6 and the Balikpapan – Samarinda Section II – IV toll road since June 14. MWhile, the Manado – Bitung section 2A toll road has operated functionally since Sept. 30. Until September 2020, the company has the largest toll road market share in Indonesia, around 52 percent, followed by other state-owned toll road operator, PT Hutama Karya, with 23 percent.
Recently, the constructor decided to cut this year’ capital expenditure from initial targets Rp20 trillion to Rp 17.5 trillion (US$1.24 billion). The issuer also delayed some projects as part of the company strategy to maintained the financial balance sheet due to the pandemic.
Arsal conveyed, the use of investment is prioritized for the maintenance of safety and the convenience of the toll roads owned by Jasa Marga. He added, the constructor also postponed the issuing of the sharia asset backed securities and prefers to issues a commercial paper up to Rp1 trillion.
The company is also reviewing to re-issue the DINFRA by using the underlying one of the Trans Java toll roads. In addition, the company is also reviewing the issuance of zero coupon bonds and step up coupon bonds. However, unfortunately the company still has not found a suitable pricing for publication.
The toll road producer is currently 70 percent owned by the government and become a public company in 2007. As of December 2019, Jasa Marga operated 1,168 kilometers (km) of toll roads across various parts of Indonesia, or 55 percent of all toll roads by length in operation.
In terms of total toll road concessions, it has the right to build, own and operate around 1,527 km of toll roads in total. The Indonesian Toll Road Authority is the regulator for the industry and the concession counter party for the builder.
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