Home News Indonesia’s Waskita Offers Global Bond US$375M in 2020

Indonesia’s Waskita Offers Global Bond US$375M in 2020

PT Waskita Karya Tbk (IDX: WSKT) to sell seven or 10 years-global bond with worth of Rp5 trillion (US$375.14 million) in 2020 - Photo: Special

JAKARTA (TheInsiderStories) – Construction firm, PT Waskita Karya Tbk (IDX: WSKT) to sell seven or 10 years-global bond with worth of Rp5 trillion (US$375.14 million) to fulfill next year’ capital expenditure, local media reported today. The state-owned company plans to spend Rp 22 trillion in 2020.

The director, Fery Hendriyanto said, now 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 use to build the Balikpapan Bay Toll Road with an investment Rp10 trillion.

Last September, Waskita has release local bond worth of Rp3.5 trillion ($250.0 million), as part of the fund raising program to get fresh funds up to Rp30 trillion from projects using the turnkey scheme in this year.

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. Last May, the company has 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.

In addition, said finance director, Haris Gunawan, the builder has received the payment from the South Sumatra Light Rail Transit project Rp2.9 trillion. Then, the company woul received the payment from work of the Trans Sumatra toll road project managed by PT Hutama Karya with total amount of Rp13 trillion.

Waskita also hope to receive funds Jakarta – Cikampek II elevated toll payments from PT Jasa Marga Tbk (IDX: JSMR) as the project owner in December wtih total amount of Rp4.5 trillion.

Aside from the turnkey project, the constructor also will get fresh funds from toll road divestment. The operator aimed to divesting part of Trans Java’ section like Kanci – Pejagan, Pejagan – Pemalang, Pasuruan – Probolinggo, Semarang – Batang, Solo – Ngawi, Ngawi – Kertosono, Sriwijaya Makmur toll road also part of Trans Sumatera section’ Medan – Kualanamu – Tebing Tinggi and Becakayu.

On the global bond planned, Gunawan explained, the proceed from the bond issuance will be use to support its businesses. Now, he said, the Waskita is still watching the market situation before release it.

Furthermore, Gunawan 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, Waskita has issued a similar equity-based instrument, the Trans Java Danareksa Infrastructure fund with total amount Rp5 trillion. The instrument makes the Trans Java toll road as an underlying asset. At that time, the issuance its subsidiary, PT Waskita Toll Road.

Last year, Waskita has issued a similar equity-based instrument, the Trans Java Danareksa Infrastructure fund with total amount Rp5 trillion. The instrument makes the Trans Java toll road as an underlying asset. At that time, the issuance its subsidiary, PT Waskita Toll Road.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com