JAKARTA (TheInsiderStories) – PT Pelabuhan Indonesia (Pelindo) III, a state-owned port operator plans to raise $1 billion from selling global bonds, the company’s CEO I.G.N. Askhara Dandiputra said.
The proceeds of the bonds issue is to finance the company’s existing port projects.
The last time the company issued global bonds was in 2014, where the company raised $500 million. The global bond was offered with a coupon rate of 4.875 percent maturing in 10 years.
The company has appointed ANZ, Credit Suisse and Standard Chartered Bank as joint lead managers, while BNI Securities and MUFG as co-managers.
Moody’s, Standard & Poor, and Fitch have given Baa3, BB, BBB- respectively to the bond with a stable outlook.
Danadiputra said a portion of the bonds proceeds will be used to fund the development of a port in Benoa in Bali and Mataram in Lombok island. The company will also use a portion of the bonds proceeds to build flyover, connecting container terminal in Lamong Bay and nearby toll road.
So far this year, the company has spent Rp4.68 trillion to develop its terminal and ports.
The company booked net profit of Rp1.67 trillion in the ten months to October this year, and expected to further rise to Rp1.7 trillion for a full year, Danadiputra added.
The biggest revenue contribution came from container loading activities at 60 per cent. In the ten months to October, the company has uploaded and downloaded 3.3 million containers, up 6 per cent from the same period last year of 3.1 million boxes.
Pelindo III is the operator of Tanjung Perak Port, the country’s second-largest port. Currently, Tanjung Perak port contributed 72 per cent of the loading activities.
Pelindo III currently manages at least 17 ports in central and some in eastern Indonesia. Among major ports operated by the company are Tanjung Perak port in Surabaya, East Java, Benoa and Celukan Bawang ports in Bali, Tenau in Kupang, and Banjarmasin in Kalimantan.