CMNP to issue Rp 1t bonds<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Toll road operator and builder PT Citra Marga Nusaphala Persada
\n(CMNP) plans to issue Rp 1 trillion (US$108 million) worth of
\nrupiah-dominated bonds in the first semester of next year to
\nsupport the company's business expansion plans.<\/p>\n
CMNP president Daddy Haryadi told reporters on Wednesday at a
\nseminar on infrastructure that the company would need fresh funds
\nnext year if it wanted to participate in the government's planned
\nmassive infrastructure projects.<\/p>\n
"We do not want to miss out on those projects, but we need to
\nhave fresh money for that. And a bond issue is certainly an
\noption, perhaps about Rp 1 trillion," Daddy said.<\/p>\n
The government has made pledges to develop infrastructure
\nfacilities over the next five years in various business sectors
\nsuch as energy, transportation, telecommunications and so on --
\nall necessary to support and generate higher economic growth.<\/p>\n
And since the financing needs would be enormous, private
\nparticipation would be required, something that both domestic and
\noverseas investors should take advantage of.<\/p>\n
State Minister for National Development Planning Sri Mulyani
\nIndrawati said on Wednesday that the country would need about Rp
\n1,030 trillion in financing for the 2005-2009 period to fund the
\nvarious infrastructure projects, of which around Rp 600 trillion
\nwould come from the private sector as the government is already
\nfacing many constraints.<\/p>\n
Daddy said that the government's plans should suit well with
\nthe company's business expansion plans, saying the firm could
\neven look for other ways to generate fresh funds, in addition to
\nthe bond issue.<\/p>\n
"Funding sources for expansion could also come from our own
\nequity or perhaps even loans, as we know the financing for
\ninfrastructure projects is huge," he said.<\/p>\n
Based on rough calculations, Daddy added, it would cost about
\nRp 50 billion to construct one kilometer of a toll road, meaning
\nthat Rp 1 trillion could only finance the construction of 20 km.<\/p>\n
Elsewhere, Daddy also said that before the company could move
\nahead with its bond issue plan, it intended to clean up the
\nfirm's debts -- in the form of dollar-dominated bonds -- by the
\nend of the year.<\/p>\n
"I think we have now about $13 million worth of dollar debts
\nto settle. We would buy back those bonds from the creditors,
\nhopefully it could be completed by year-end, so it would not hold
\nthe company up from its expansion," he said.<\/p>\n
Formerly controlled by the eldest daughter of the country's
\nformer president Suharto, Siti Hardiyanti Rukmana, CMNP is now
\n58.3 percent owned by the public.<\/p>\n
State toll road operator PT Jasa Marga also owns a 17.8
\npercent stake in the company.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cmnp-to-issue-rp-1t-bonds-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}