JAKARTA (TheInsiderStories) – Unit of Indonesian toll road developer, PT Jasa Marga Tbk (IDX: JSMR) issued Islamic bond (SUKUK) worth of Rp785 billion (US$56.07 million). The issuance is part of the group debt recycling plan and to expand the businesses.
Based on the discloruse information to Kustodian Sentral Efek Indonesia (KSEI), PT Jasa Marga Pandaan Tol divided the Sukuk into two series. Series A have an installment payment 8.5 percent per year with a three years tenor and Series B has compensation 9.0 percent per year with a five years tenor.
The electronic distribution of the two series is scheduled July 17, while the date of payment of the installment payment is made on Oct. 17. PT Mandiri Sekuritas and PT Bahana Sekuritas acting as the arrangers for the publishing.
As we know, Jasamarga Pandaan Tol is the manager of the Gempol-Pandaan toll road section in East Jave. The length of the road reaches 13.61 kilometers. The total investment cost of this section reaches Rp1.47 trillion and has a concession period until 2049.
Currently, the composition of the shareholders of Jasarmarga Pandaan are Jasa Marga 40 percent, PT PT Jalan Tol Pasuruan Regency 6.19 percent, and PT Trans Optima Luhur 53.81 percent.
This year, the toll road operator allocated capital expenditure around Rp27 trillion to complete five new toll roads such as Jakarta Outer Ring Road (JORR) 2, Jakarta-Cikampek elevated toll road, Balikpapan-Samarinda in East Kalimantan, Manado-Bitung in North Sulawesi, and Pandaan-Malang toll road project.
In last April, JSMR has offered a Collective Investment Fund Contract worth Rp1 trillion. According to Finance Director Donny Arsal the company reviewed a number of options to raise funds through the capital market in this year.
The developer review the issuance of two new debt instruments like step-up coupon bonds and zero-coupon bonds with a target fund of up to Rp2 trillion.
According to Arsal, bond step-up coupons are able to provide companies the flexibility to determine their bond interest rates based on the company’s cash flow. For example, interest bonds paid at the beginning of the year tend to be low due to adjusting cash flow.
“However, at the end of the period the interest is likely to be greater than the market average,” he added.
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