Potential Bond Issuances in 4Q of 2019 - Photo: Special

JAKARTA (TheInsiderSTories)– Several public listed companies considered to issue local bonds in the fourth quarter (4Q) of 2019. Some of them are state-owned companies.

PT Perusahaan Gas Negara Tbk (IDX: PGAS) is reviewing the bond sale in this year, said the finance directo Reza Pahlevy. He could not be sure that PGAS would issue bonds denominated in rupiah or globally.

The proceeds from the bond issuance are planned to prepare capital expenditure needs for 2020. The distributor and gas seller budgeted capital expenditure (capex) US$705 million, from this year worth of $500 million.

CEO PGAS, Gigih Prakoso explained that the bond issuance fund will be used for equity injection after acquiring a 51 percent stake in PT Pertamina Gas. The company had spend $1.3 billion to acquired the unit of PT Pertamina.

Then, Haru Koesmahargyo, finance director of PT Bank Rakyat Indonesia Tbk (IDX: BBRI), said the lender has planned to issue local bond Rp5 trillion (US$354.61 million) in October. The proceeds used to fund the bank’ businesses and keep liquidity safe.

Other lender, PT Bank Tabungan Negara (Tbk (IDX: BBTN) has choose junior global bonds worth US$300 million in November or no later than January 2020. According to the director, Nikson Napitupulu, the funds will be used to strengthened its capital adequacy ratio.

In addition, state-owned construction firm, PT PP Tbk (IDX: PTPP) has planned to release conventional bonds and perpetual bonds in the fourth quarter (4Q) of 2019 or early next year. Finance Director Agus Purbianto explained, the company still had a perpetual bond issuance license worth of Rp850 billion after released Rp150 billion recently.

Beside, PTPP will also issue Rupiah bonds Rp1.5 trillion to finance the needs of the company’ to develop energy and drinking water management systems. Then, precast and ready mix concrete manufacturer, PT Waskita Beton Precast Tbk (IDX: WSBP) also plans to release local bond worth Rp1.5 trillion in the 4Q of 2019.

In general, said the managing director Jarot Subana, these funds will be used for working capital, capital expenditure (capex), and for debt refinancing. Publicly listed toll operator, PT Jasa Marga Tbk‘ (IDX: JSMR) director Donny Arsa also stated that his company now reviewing plans to issue corporate bonds with an emission around Rp 2 trillion.

The bond interest rate is estimated at 8.0 – 9.5 percent with a long-term tenor. While, PT Wijaya Karya Beton Tbk (IDX: WTON) also prepared bond issuance with competitive interest rates below 9 percent, said Wika finance director Imam Sudiyono. Furthermore, PT Aneka Tambang Tbk (IDX: ANTM) also opened the opportunity to issue notes to construct nickel smelters for cobalt production, said the CEO Arie Prabowo Ariotedjo. Both companies not mentioned the values.

From the port sector, PT Pelabuhan Indonesia (Pelindo) IV’ CEO Farid Padang plotted bonds worth of Rp2 trillion in the 4Q of 2019 to build several projects such as Makassar New Port, International Port of Bitung Hub, Kendari New Port, and Pantolan Port. He described the investment needs to manage 27 ports by the company to reach Rp6.4 trillion.

From the private sector, PT Intiland Development Tbk (IDX: DILD) and PT Tiphone Mobile Indonesia Tbk (IDX: TELE) also aimed to sell bond in the last quarter of this year. The property developer will issue Sharia bond Rp400 billion with tenure three years to pay back debt and slice the interest expenses from 15 percent to around 10.5 to 11.5 percent.

Later on, Tiphone, the cellphone seller and online pulse charging firm plans offered bond Rp500 billion in this month. The bonds will have a three-year tenures with a fixed interest rate of 11.5 percent.

US$1: Rp14,100

by Linda Silaen, Email: linda.silaen@theinsiderstories.com