Jasa Marga to issue Rp 10t bonds: CEO<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
State-owned toll road builder and operator PT Jasa Marga plans to
\noffer Rp 10 trillion (US$1.17 billion) in bonds to fulfill the
\nyear's need for working capital of the same amount, said company
\npresident Syarifuddin Alambai.<\/p>\n
The bond plan, he explained on Monday, was among three
\nfeasible capital-raising options being considered by the company,
\napart from an initial public offering (IPO) and offering projects
\nto investors with the government as its standby buyer.<\/p>\n
The bond offering, however, is seen to be the most viable
\noption in the short term.<\/p>\n
"It can be done within the first semester," Syarifuddin said
\nafter a meeting with Ministry of Finance officials.<\/p>\n
The proceeds, he continued, would be used to fund Jasa Marga's
\nconstruction of new toll roads this year in Jakarta, Semarang,
\nSurabaya and Solo.<\/p>\n
The roads are part of projects being developed until 2009 for
\na total capital of Rp 86 trillion, whereas the company has only
\nRp 42 trillion at present.<\/p>\n
Jasa Marga offered 10-year bonds worth Rp 900 billion in
\nSeptember and Rp 1 trillion in October.<\/p>\n
As to the company's IPO plan, Syarifuddin said it would be
\nrealized later this year.<\/p>\n
"The IPO, offering up to 40 percent of our total shares, will
\nhopefully be done in October or November," he said.<\/p>\n
Syarifuddin previously said the IPO would target Rp 1.5
\ntrillion in proceeds, which would be used to repay Jasa Marga's
\ndebts and to finance the construction of a 1,486-kilometer toll
\nroad from Merak, Banten, to Banyuwangi, East Java.<\/p>\n
Jasa Marga currently manages 383 kilometers of the country's
\n520 kilometers of toll roads. The remainder is managed by private
\ninvestors.<\/p>\n
This year, the company's revenue target is Rp 1.7 trillion,
\nmostly from toll its road traffic revenue of Rp 4.7 billion per
\nday. Last year, the company recorded Rp 1.3 trillion in revenue
\nand a net profit of Rp 250 billion.<\/p>\n
A number of investors have previously called on the government
\nto raise the toll road tariff to make investment in the sector
\nmore appealing.<\/p>",
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"sponsor": "Okusi Associates",
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