Toll Road - Photo by PT Nusantara Infrastructure Tbk

JAKARTA (TheInsiderStories) – Indonesian toll-road operator PT Jasa Marga Tbk (IDX: JSMR) has opened the offshore rupiah, or known as Komodo bond, the market for a business with a Rp4 trillion (US$295 million) issue, that beat pricing expectations.

The company sold three-year rupiah bonds in the 144A/Reg S market at par to yield 7.5 per cent, within the initial guidance of 7.875 per cent area and much tighter than some investors have expected.

Jasa Marga drew orders of over Rp15 trillion from 15 investors at final pricing, allowing it to print the full Rp4 trillion size for which it had received approval.

The Indonesian government owns a 70 per cent stake in Jasa Marga, which is listed on the Indonesian Stock Exchange and rated Baa3/BB+ (Moody’s/S&P).

Indonesia’s sovereign US dollar bonds due March 2020 were yielding 2.4 percent. AllianceBernstein Senior Vice President and Portfolio Manager Brian Gibson estimated Foreign excgange hedging costs at around 4.25 per cent, implying that investors would still earn a pick-up over the sovereign if they swapped their Komodo exposure back to US dollars.

Jasa Marga is interested to take over six toll roads owned by PT Waskita Karya Tbk (IDX:WSKT) mainly Trans Java.

“Yes, we certainly want to buy, possibly in the first quarter of 2018, hopefully between buyers and sellers are matching,” said President Director of Jasa Marga Desi Arryani at the Office of the Ministry of SOEs on Monday (12/4).

Jasa Marga’s interest in the acquisition of the Trans Java toll road is in line with the high traffic tolls in the region and is a strategic corridor that drives economic growth.

Previously, Waskita has announced its plan to divest a number of its toll road segments whose constructions have been completed. Waskita targets to complete the divestment process in the first quarter of 2018.

Jasa Marga needs about Rp7 trillion for the funding of its development projects in 2017. These funds need to be collected through a combination of bank loans, bonds, and asset securitization.

In the past, Indonesian companies have mostly issued global bonds in U.S dollar or other currencies. However, then struggle to service their debts after rupiah shriveled against the greenback.

The global Rupiah-denominated bonds would open up a new pool of investors for Jasa Marga, analysts have said.

US$1: Rp 13,500

Written by Elisa Valenta, Email :