JAKARTA (TheInsiderStories) – Indonesian construction company, PT Waskita Karya Tbk (IDX: WSKT) received cash of Rp12.3 trillion (US$878.57 million) which derived from turnkey payment of Rp7.8 trillion and land bailouts returning of Rp4.5 trillion, said the management on Thursday (12/26).
Finance director of the company, Haris Gunawan, has said that the state-owned firm expected to get the additional cash to Rp14 trillion from other turnkey projects until the end of this year. The funds will be used to pay the loan off to the creditors.
He added, the improvement of the cash flow brought the firm’ outlook upscale. Recently, said the director, Fitch Rating affirmed the Waskita Karya rating to A with stable outlook from previous rating of A with negative outlook.
The affirmation of outlook is also influenced by the company’ role in infrastructure development. It said, around 70 percent of the new contract with worth of Rp166 trillion has received during 2015 – 2018 are strategic project such as toll roads, dams,light rail transits and airports.
Recently, Waskita has just finished elevated road Jakarta – Cikampek II with an investment Rp16.3 trillion. The developer also involved in toll road concession of toll road length of more than 1,000 kilometers.
Next year, the company plans to issue seven or 10 years-global bond with worth of Rp5 trillion to fulfill next year’ capital expenditure. The state-owned company eyeing to spend Rp22 trillion in 2020.
While other director, Fery Hendriyanto said, the planned global bond issuance is still in the process get rating from Standard & Poor’s, Moody’s Investor Service and Fitch Ratings. Part of the funds, he said, will be used to build the Balikpapan Bay Toll Road with an investment Rp10 trillion.
Last September, the firm released local bond worth of Rp3.5 trillion. The bond publishes in two series. Series A have three years term and series B with five years period. The bonds have been listed at the Indonesia Stock Exchange on Sept. 30, 2019.
Furthermore, on May, Waskita also issued two series local bonds with total amount Rp1.84 trillion. The bonds have a tenor of three and five years. PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas and PT Mandiri Sekuritas act as joint lead underwriters for the issuances.
On the global bond planned, Gunawan explained, the proceed from the bond issuance will be used to support its businesses. Now, he said, the Waskita is still watching the market situation before release it.
Furthermore, he revealed, the firm also planned to issue a limited investment mutual fund with underlying asset in the Bekasi Cakung Kampung Melayu toll road segment. He said, this instrument would be sold directly to investors not through asset management company. He reluctant to provide the target from the issuance.
Last year, the builder through PT Waskita Toll Road issued a similar equity-based instrument, the Trans Java Danareksa Infrastructure fund with total amount Rp5 trillion. The instrument used the Trans Java toll road as an underlying asset.
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