SOE Infrastructures Companies to Enliven Primary Market Next Year
Some Indonesia State Owned Enterprise (SOE)s who have stated to release bond next year were; Jasa Marga, Tbk (JSMR:IJ), Wijaya Karya, Tbk (WIKA:IJ), Semen Indonesia, Tbk (SMGR:IJ) and PP Properti, Tbk (PPRO:IJ). In the purposed state budged 2016, WIKA would receive IDR 3 trn from state capital to work on some infrastructure projects. The company will anticipate the delay of state capital by issuing first tranche bond in 1H16 worth IDR 1.4 trn. Likewise, Jasa Marga, Tbk (JSMR:IJ) also plans to issue rupiah denominated bond finance its next year’s capex (IDR 14 trn) to construct 13 toll roads where they expect to use IDR 3 trn – IDR 4 trn from internal cash while the rest IDR 10trn – IDR 11 trn will come from bond sale and bank loan.
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As for SMGR, the company will issue Shelf Registered Bond worth IDR 3.5 trillion in the next three years where the proceed will used to finance its capex. The company expects to issue IDR 700 bn – IDR 1.05 trn in the first tranche. While the second tranche will be released in 2017 with the issuance size is estimated at around 60% – 70% of the total bond limit program while the remaining issuance will be released in the following year. The bonds underwriter will be assigned at 1Q16. Meanwhile, PPRO will firstly issue Medium Term Note (MTN) worth IDR 300 bn by the end of this year where it would be priced at 10.5% – 11.5%. In 2016, PPRO will start release bond worth IDR 1 trn with 3 – 5y maturity.
