JAKARTA (TheInsiderStories) - Publicly listed firm, PT Wijaya Karya Tbk (IDX: WIKA) plans to offer conventional and sharia bond with targets up to Rp5 trillion (US$340.14 million). The proceeds will be use for working capital and for debt refinancing of the global bonds, maturing in January 2021.
“(The bond issuances) we will divided into three stages. In the fourth quarter we offer Rp2 trillion,” said the CEO, Agung Budi, on Monday (11/02), without giving further details on the next bond issuances.
On Oct. 21, Fitch Ratings Indonesia has just downgraded Wijaya Karya‘ long-term national rating to A- from A. At the same time, the agency has affirmed the default longterm foreign currency and local currency issuer rating at BB-.
The rater also removed all the issuer’ debt ratings from Rating Watch Negative, which was pinned on Sept. 10, 2020, with a negative outlook. The affirmation follows Fitch’ review of the company’ relationship with the government.
“We have revised the strength and incentives for the government to provide support, although the WIKA‘ aggregate GRE (government-related entity) score of 15.0 below the GRE criteria remains unchanged,” wrote Fitch Ratings.
He also emphasized that the company will continue to boost revenue from several projects abroad. However, in the midst of the pandemic, its revenue contribution from overseas projects this year was revised to only 5 percent from 10 percent, previously.
Currently, said Budi, there are several overseas projects that have just been worked on, including construction projects in the Philippines, Taiwan and the Democratic Republic of Congo with total values is over than Rp2 trillion. Wijaya Karya 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 company 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.
This year, Wijaya Karya targets the acquisition of new contracts worth of Rp21.3 trillion, revised from the previous target of IDR 65 trillion. The new contracts that have been realized have reached Rp7 trillion and have received an additional Rp3 trillion from the government’ food estate project.
US$1: Rp14,700
Written by Editorial Staff, Email: theinsiderstories@gmail.com
