The state construction company, PT Wijaya Karya Tbk (IDX: WIKA) has repaid its Komodo Bond with a principal values of Rp5.4 trillion (US$386 million) - Photo by the Company

JAKARTA (TheInsiderStories) – The state construction company, PT Wijaya Karya Tbk (IDX: WIKA) has repaid its Komodo Bond with a principal values of Rp5.4 trillion (US$386 million), the management announced today. The debt paid with the proceed of the issuance of global bond Rp2 trillion, bridging loans Rp3 trillion, and internal cash Rp400 billion.

For background, the issuer has released the notes worth of $405 million on the London Stock Exchange with tenure three years and have a coupon of 7.7 percent per annum. The bond becomes the 19th active Indonesian rupiah-denominated bond listed on the London bourse bringing the total amount outstanding to approximately $2.7 billion.

The CEO, Agung Budi Waskito, also announced, until January 2021, Wijaya Karya the has pocketed a new contract values nearly to Rp1 trillion. The contracts include the Kretek 2 Bridge project in Yogyakarta valued of Rp364.4 billion, joint with PT Hutama Karya, and the construction of houses for Indonesian Army amounted to Rp603.35 billion.

In the consortium, the builder has a share of 53 percent and the bridge will be built along 747.7 meters. The construction of the bridge in Yogyakarta is targeted in two years time until 2023. The constructor also build 1,091 military service houses spread throughout Indonesia in 14 Main Commandos.

Wijaya Karya sees that the net profit in 2020 of Rp208 billion and in 2021 around Rp1.0 trillion. In the first nine month of last year, the company’ revenues rose 43.25 to Rp10.38 trillion from the previous year worth of Rp18.29 trillion. But the net profit eroded by 96.28 percent to Rp 50.19 billion in annual basis due to higher operation costs.

This year, the issuer plans to spend Rp3.05 trillion or increased 27.3 percent when compared to the last year amounting to Rp2.39 trillion. The company will allocated Rp119 billion for existing projects, Rp2.13 trillion for capital injections of its units, and Rp800.82 billion for expansion.

Part of the funds use to support the ongoing projects like the Kunciran – Cengkareng toll road, the Balikpapan – Samarinda toll road, and the Semarang Demak toll road. Other projects to completed in this year are power plants. Wijaya Karya is planning to divest the Container Terminal in Belawan, North Sumatra. The builder owned 15 percent at the portfolios.

As for toll road assets, the divestment plan will be carried out after the construction is complete. While, its subsidiary PT Wika Realty, plans to take the floor on the Indonesia Stock Exchange in 2022, after the process of hospitality holding company done.

The unit was appointed by the state own enterprises ministry as the anchor hotel chain owned by the government and managed around 22 hotels owned by four other state firms, such as PT Garuda Indonesia Tbk (IDX: GIAA), PT Hotel Indonesia Natour, PT Pertamina, PT Pegadaian, and WIKA. In this holding process, Wijaya Karya will maintain its ownership in the range of 70 – 75 percent.

Then, after the IPO, the parent still maintains majority ownership around 55 percent. Based on the planned, the revenues from the new holding will contributes around 10 – 15 percent from previous only 5 – 6 percent of the total income.

Currently, Wijaya Karya has several overseas projects that have just been worked on by the constructor in the Philippines, Taiwan and the Democratic Republic of Congo with total values over than Rp2 trillion. The constructor was appointed as the contractor.

The company also working on several projects, including a civil housing project in Algeria. In addition, the builder is also received a renovation project for the Nigerian Presidential Palace. In Indonesia, the constructir has been assigned by the government to build several national strategic infrastructure projects such as 16 dams, toll roads for the Serang – Panimbang (Banten) section and Cengkareng – Kunciran toll road. Others are the Fast Train project, Mempawah port, and power plant projects.

US$1: RP14,000

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