JAKARTA (TheInsiderStories) – The toll road manager, PT Jasa Marga Tbk (IDX: JSMR), is preparing a capital expenditure around Rp7.75 trillion (US$553.57 million) in this year to support the business expansions. Most of the funds allocated for the development of the toll road business lines.
In an official statement released today (01/28), the CEO, Subakti Syukur, said the cash allocation was primarily used for the completion of ongoing projects like Cinere – Serpong, Kunciran – Cengkareng, Jakarta – South Cikampek, Probolinggo – Banyuwangi, and Yogyakarta – Bawen toll roads. The company also wants to strengthening the company’ performances after hit by the COVID-19 pandemic.
He added, Jasa Marga has completed some of Jakarta Outer Ring Roads (JORR-2) and also seeking a new concessions. One of them is to become the initiator for the Gedebage – Tasikmalaya – Cilacap toll road project with an investment value of Rp57.59 trillion and the Patimban Access Toll Road project with costs Rp7.53 trillion.
Last year, the toll road builder, decided to cut the capital expenditure from initial targets Rp20 trillion to Rp 17.5 trillion. The issuer also delayed some projects as part of the company strategy to maintained the financial balance sheet due to the pandemic. Finance director, Donny Arsal, said the developer also postponed the issuing of the sharia asset backed securities and prefers to issues a commercial paper up to Rp1 trillion.
The notes is similar to a discounted bond with a tenure of one year to enlivening the products published by Bank Indonesia. He explained that the issuance of asset back securities will be reviewed again by Jasa Marga at the end of the year. The instruments are short-term debt securities issued without collateral on the money market and issued by companies or financial institutions.
The builder is currently reviewing the issuance of a number of financial instruments to increase funding for the completion of the company projects like Islamic asset back securities with a target fund at least Rp2 trillion. For this securitization, the issuer will use the basic asset of ticket revenue from the Jakarta Outer Ring Road Cilincing – Cikunir in the capital city.
Jasa Marga is also reviewing to re-issue the DINFRA (also asset back securities) 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.
In the first nine months of 2020, the company posted a total revenue of Rp10.54 trillion, down 50.13 percent on an annual basis. The decreased was accompanied by a reduction in expenses, except the finance expenses and make the net profit fell 89.5 percent to Rp157.6 billion in the same period. In 2020, the issuer has releases local bond Rp2 trillion.
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