Lighter Indonesia Bonds Issuances from Infrastructure and Property SOE’s
Bank Indonesia’s rate cut and debt refinancing would drive some SOE’s to raise capital from bond issuance this year. Waskita Karya Tbk (WSKT:IJ idA/Stable) and Jasa Marga Tbk (JSMR:IJ idAA/Stable) seeks to release bonds worth IDR 2 trn and IDR 1,5 trn respectively. Waskita’s bond will be part of its two years bond program worth a maximum IDR 5 trn. The proceeds will used to finance its priority projects such as Palembang’s Light Rail Transit (LRT) with has investment value c. IDR 7 trn. As for Jasa Marga, the company targets to get the issuance out before June 2016 given the proceed will be used to refinance its maturing bonds worth IDR 1 trn on 7 June 2016. Jasa Marga also has IDR 600 bn bonds maturing on 27 September this year.
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Elsewhere, HK realtindo (NR) and PP Properti Tbk (PPRO:IJ idA-/Stable) also plan to raise capital from bonds with the issuance size amounted to IDR650bn and IDR1.2 trn respectively. HK Realtindo, a subsidiary of Hutama Karya, sets to issue 5-6y bond with the proceeds will be utilized to finance land acquisition and for the projects which focus to increase its recurring income base. As for PP Properti, the company target to issue bonds and medium term note (MTN) whereas the proceed funds will be used to acquire some lands and repay some maturing debts. PP Properti expects to spend IDR400bn to acquire land in Greater Jakarta area and Surabaya for its next high rise projects. The company also would prepare another IDR800bn fund to build infrastructure and strengthen capital in its subsidiaries.
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Inti Bangun Rating at Level A- from Pefindo
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Fitch Affirms Indonesia Ratings at BBB-/Stable
