State firm, PT Wijaya Karya Tbk (IDX: WIKA) to issuer domestic bond and SUKUK up to Rp3 trillion (US$214.29 million) to pay the mature debt and for working capital - Photo by the Company

JAKARTA (TheInsiderStories) – State firm, PT Wijaya Karya Tbk (IDX: WIKA) to issuer domestic bond and SUKUK up to Rp3 trillion (US$214.29 million) to pay the mature debt and for working capital. The company offered the notes with three series.

Based on public announcement released today (02/10), Series A have a principal amount Rp495 billion with an interest rate of 8.50 per annum and three-years of tenure. Series B is targeted Rp745 billion with coupon 9.10 percent per annum and have term five years. Then, Series C amounting to Rp1.25 trillion with seven years of tenure and interest rate of 9.75 percent per year.

Wijaya Karya also issued sharia bond around Rp500 billion in various series. Series A with worth Rp134.30 billion have a ratio of 37.28 percent of the revenues and equivalent to profit sharing of 8.50 percent per year with three years period. Series B of Rp211.60 billion with a ratio of 39.91 percent of the revenues and equivalent to profit sharing of 9.10 percent per annum with a five-year of tenure.

While, the Series C is targeting of Rp154.10 billion with a ratio of 42.76 percent of the revenues and equivalent to profit sharing of 9.75 percent per year with term seven years.  PT Pemeringkat Efek Indonesia has given rating A for the local bond and A-sharia for the Mudharabah notes.

Wijaya Karya set the public offering period on Feb. 25 – 26 and list the bonds on March 4. The joint-lead underwriters for the issuances are PT BNI Sekuritas, PT BRI Danareksa Sekuritas, PT Mandiri Sekuritas, and PT RHB Sekuritas Indonesia.

Recently, the issuer has repaid its Komodo Bond with a principal values of Rp5.4 trillion with the proceed of the global bond with total valued Rp2 trillion, bridging loans Rp3 trillion, and internal cash Rp400 billion. The construction firm has released the notes with worth of $405 million on the London Stock Exchange with tenure three years and have a coupon of 7.7 percent per annum.

The CEO, Agung Budi Waskito, said Wijaya Karya targeting the net profit Rp208 billion in 2020 and this year 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 developer 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, Wijaya Karya has been assigned by the government to build several national strategic infrastructure projects such as 16 dams, toll roads for the Serang – Panimbang in Banten and Cengkareng – Kunciran toll road. Others are the Fast Train project, Mempawah port, and power plant projects.

US$1: RP14,000

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