PT Wijaya Karya Tbk (IDX: WIKA) seeks funds from bond market to raises up to Rp5 trillion (US$340.14 million) starting this year - Photo: Special

JAKARTA (TheInsiderStories) – Another state-owned firm, PT Wijaya Karya Tbk (IDX: WIKA) seeks funds from bond market up to Rp2 trillion (US$136.05 million) in this year, the management said on Thursday. The proceeds use to strengthened the company cash structure. 

According to the spokesman, Mahendra Vijaya, until next year the constructor looking around Rp5 trillion from bond market to refinance the company’ debt. The issuer have an obligation to pay its Komodo Bonds worth of Rp5.4 trillion, which will mature in January 2021. As of June 2020, the company’ cash and cash equivalents were recorded at Rp7.07 trillion.

Now, Wijaya Karya is welcoming the opening of the government’ project tender for the 2021 budget. There were 501 packages auctioned by the government with a values of Rp3.14 trillion. At the end of September, the new contracts obtained by the company worth of Rp7.8 trillion. Until the end of 2020, the issuer is still optimistic to reached a new contracts of Rp21.3 trillion.

Recently, the constructor get a shareholder loan from PT Pilar Sinergi BUMN Indonesia, a state-owned consortium of PT Kereta Cepat Indonesia China for the Jakarta – Bandung high speed railway project, amounting to Rp645.83 billion. The loan is given with a one year tenure. The company owned 38 percent shares at the joint venture firm.

Another shareholders are railway operator, PT Kereta Api Indonesia with 25 percent ownerships, PT Perkebunan Nusantara VIII 25 percent, and PT Jasa Marga Tbk (IDX: JSMR) at 12 percent. With this additional funding, the total loans for the projects has reached Rp4.63 trillion since 2015. 

Recently, Fitch Ratings cut the company’ debt rating caused the declined of financial performance in the second quarter of 2020 and the uncertainty of providing stimulus from the government. The agency downgraded the company’ rating from BB to BB-. Fitch also downgraded the national rating of its long-term bond program from AA- to A.

In this month, Wijaya Karya was officially appointed by the National Hosting Authority of Solomon Island to build the Multi Purpose Sport Complex in the country. This venue was built for the Pacific Games 2023 tournament for the countries around the Pacific island.

The contract worth of Rp112 billion and is planned to be built with an area of ​​5,800 square meters until Dec. 31, 2022. With Solomon joining, the constructor is now working on projects in 10 countries, like the Sanying MRT Station in Taiwan, Limbang Bridge in Malaysia, the Presidential Palace of the Republic of Niger, and Social Apartments in Algeria.

While, PT WIKA Bitumen, a unit of PT Wijaya Karya Aspal has succeeded export buton rock asphalt around 50,000 metric tones to Qingdao Bright Century, PTE. Ltd., in China on Sept. 29. The plans, the delivery from Banabungi Port, Southeast Sulawesi, will ended on Oct. 5.

“The shipment of Buton Rock Asphalt exports to China have a contract values $1.47 million. Is part of WIKA Asphalt’ operational strategy in expanding overseas markets, especially Asia, so that our business portfolio will be increasingly recognized by our strategic partners abroad,” said Bambang Dwi Wijayanto, the CEO of WIKA Bitumen today.

Buton Rock Asphalt is pure buton asphalt produced from mines in the Kabungka area in Southeast Sulawesi with a mining business permit owned by WIKA Asphalt since 2019. While Qingdao Bright Century is engaged in manufacturing and has been a partner with WIKA Bitumen since 2013.

During first half of 2020, the issuer posted a net profit of Rp324.75 billion and sales Rp7.13 trillion, the majority of which came from infrastructure and building projects. Other contributions came from the industrial sector, energy and industrial plants, as well as realty and property.

US$1: Rp14,700

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