JAKARTA (TheInsiderStories) — Indonesia’s infrastructure state-owned enterprise, PT Adhi Karya Tbk (ADHI) will release Rp1.02 trillion (US$71.36 million) bond, as the company has several big infrastructure projects ongoing. The bond issuance is expected to support the company’s growth.
This bond offering date is scheduled on June 19-20, the company said. Allotment date will be on June 21.
Following, order payment return and electronic distribution are going to be on June 25. So it could be recorded in the Indonesia Stock Exchange on June 26.
ADHI management explained, the bond will be issued in two series. The series A amounted Rp556 billion will have a 9.25 percent interest rate annually with 3 years maturity. Meanwhile, series B valued Rp473.5 billion bond. It has a higher interest rate at 9.75 percent and longer maturity in 5 years.
The initial bond interest payment is on September 25 and will be paid every 3 months. The series A bond maturity date is scheduled on June 25, 2020, and 2024 for series B.
“Funding gathered from this general offering will be used for working capital,” said company’s announcement released on Wednesday (05/29).
This year, Adhi Karya allocated Rp4 trillion to Rp5 trillion capital expenditure (capex), hiked double than the previous year. The capex will be used to fund several Adhi Karya’s aggressive infrastructure projects such as LRT, toll road, and property.
Then, the company targeted Rp30 trillion new contracts during 2019, 30 percent higher than last year’s realization. By this, the issuer aims to get Rp22 trillion revenue.
Indonesia’s rating company PT Pemeringkat Efek Indonesia tagged this ADHI’s bond as A-(idn). Five underwriters chosen for the bond, PT BCA Sekuritas, also several state-owned enterprise’ subsidiaries, PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, and PT Mandiri Sekuritas.
Then, PT Bank Mega Tbk (IDX: MEGA) becomes the trustee for the bond.
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