JAKARTA (TheInsiderStories) – The construction firm, PT PP Tbk (IDX: PTPP), plans to offers local bond up to Rp4 trillion (US$142.86 million) in two years time starting this year, said the director last week as quoted by local media. In details, the conventional bonds is targeting of Rp3 trillion and Sharia bond Rp1 trillion.
Director finance of the company, Agus Purbianto said, in this year, the issuer prepared an offering of bond of Rp1.5 trillion and SUKUK up to Rp500 billion. Then, the state company will reissue the same values in 2022.
He explained, part of the proceeds from the offering will be used by PTPP for debt refinancing and partly to meet the working capital and investment. Currently, the builder has bond will mature on July 6, 2021 with worth Rp1.04 trillion. The constructor is also continuing the negotiations with strategic investors from Malaysia and Hong Kong to divest its two toll road shares.
The company is targeting to get fresh funds around Rp1.6 trillion from the equity sales in this year. Since last year, the company has initiated the divest Pandaan – Malang in East Java and Medan – Kualanamu – Tebing Tinggi in North Sumatera, with ownerships 35 percent and 15 percent, respectively.
Purbianto also explained, in this year, PTPP has allocated a capital expenditure about Rp6.2 trillion. Most of the funds will be use to continue the existing projects, such as toll roads, property, and for the subsidiary’ projects. And the remaining purposing for new investment.
Last year, the CEO, Novel Arsyad, announced his office to divest 14 percent’ ownership in the Cisumdawu toll road project, located in West Java. Then, Kuala Tanjung Multipurpose Port project (25 percent) and Pandaan Malang toll road project (35 percent). He continued, there were several projects in the company’ pipeline such as energy, infrastructure and buildings projects.
In 2020, the company claimed that it will be hassle to achieve double digit growth for revenue and net profit. Then recurring income assets are derived from water supply system projects in Bekasi in West Java and Tangerang. The developer also wants to strengthen recurring income’ businesses from toll and renewable energy, like biomass energy project for East Indonesia.
Currently, the contractor managed several projects such as two steam power plants in East Nusa Tenggara and North Sulawesi with total costs Rp8 trillion. The capacity of each steam power plant is 2×50 megawatts (MW). The first steam power plant was carried out on an area of 30 hectares in West Kupang, East Nusa Tenggara.
The second steam power plant was built on 32 hectares of land in the Bolaang Mongondow, North Sulawesi. The construction firm was optimistic to complete the first projects in West Kupang in three years time and in Bolaang Mongondow in 39 months.
Its also expected the two steam power plants will be ready to operate in 2022, so it will be able to electrify several villages and sub-districts in the East Nusa Tenggara and North Sulawesi regions. PTPP also become a contractor for ferro nickel smelter construction located in Kolaka, Southeast Sulawesi with a total investment of Rp14.5 trillion. The contractor has signed a contract to build a smelter with PT Ceria Nugraha Indotama as an investor in April 2019.
The developer will be cooperate with Chinese’ ENFI consortium to construct the smelter project. The management said that the project to build the ferronickel smelter will require an investment of Rp4 trillion in the first phase. The plant has a total capacity of 4×72 MVA and targeting to operate in 2021. The production is projected to reach 229,000 tons of ferronickel annually.
In addition, the company also eyes construction projects in the Philippines and port development project in Malaysia worth of Rp2 trillion, after getting the project in Vietnam with worth of Rp500 billion.
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