The construction firm, PT Wijaya Karya Tbk (IDX: WIKA), Is planning to issue local bonds up to Rp5 trillion (US$337.84 million) to refinances its matured bonds - Photo by the company

JAKARTA (TheInsiderStories) – The construction firm, PT Wijaya Karya Tbk (IDX: WIKA), has planning to issue local bonds up to Rp5 trillion (US$337.84 million) to refinances its matured bonds. The state-owned company also looking various expansions in global market.

Finance director of the issuer, Ade Wahyu, told media on Thursday (10/01), the bonds and SUKUK will be issues in two stages, in the fourth quarter of 2020 and and first quarter of 2021. The issuer need fund to refinances its Komodo bond, which will mature in January 2021 with total amount Rp5.4 trillion also for working capital.

Recently, Fitch Ratings cut WIKA‘ 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.

This week, the issuer 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, WIKA 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, WIKA 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: Rp14,800

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