JAKARTA, NNC - PT Pelabuhan Indonesia IV (Persero) is completing the process of building four ports to strengthen connectivity especially in eastern Indonesia. In order to strengthen the capital and maintain a healthy balance sheet, the state-run port services operator, commonly called Pelindo IV, will issue bonds with tenor up to 10 years.
President Director of Pelindo IV Doso Agung said that the first bond issuance is targeted to raise funds as much as IDR3 trillion. "About 59 percent of the proceeds are for refinancing loans from Bank Mandiri and BRI, and to continue the ongoing national strategic projects development," he said in a public exposure of the bond offering in Jakarta on Friday this week.
He explained that the company is currently focusing on the completion of four port projects: Makassar New Port, Kendari New Port, Bitung Container Terminal, and Port of Pantoloan. As much as 33 percent of these bond proceeds will be spent to complete the construction of infrastructure and superstructure of Makassar's new port.
"About eight percent of the bond proceeds will be used to purchase port facilities in Bitung, Kendari and Pantoloan projects," he said.
The company has built Makassar New Port since 2016. Until now, the construction has been completed about 69 percent and by end of year can be inaugurated. "It will be inaugurated by the President," he said.
Meanwhile, Kendari New Port, which began construction in the same year built to serve Panama-size ships, replaced the old port to widen the market demand. "This port investment value is IDR1 trillion and now its progress about 80 percent," said Doso. In addition, Bitung container port is estimated to absorb a total cost of IDR600 billion and Pantoloan port about IDR50 billion.
"With this bond issuance, the capital structure of Pelindo IV will be healthier and the company can speed up in encouraging the development of eastern connectivity of Indonesia," said Doso.
Related to the general period of bonds, the company expects to realize it on June 28-29, 2018 after obtaining a potential investor response during the bookbuilding period from May 22 to June 5, 2018. The listing on the Indonesia Stock Exchange is expected to take place on July 5, 2018.
The Company has also announced an indicated bond coupon consisting of three series. The 5-year tenor A series is estimated with interest rates of 7.75-8.5 percent, 7-year tenor B series with interest rates from 8.5-9.35 percent, and 10-year tenor D series with interest rates around 8.75-9.75 percent.
PT Danareksa Sekuritas, PT Indo Premier Sekuritas, PT Mandiri Sekuritas, PT BNI Sekuritas, and PT CGS Sekuritas are parties appointed by the Company to act as Joint Lead Underwriters of this bond.
"Pelindo IV has 50 percent of the operating area in eastern Indonesia, so investors who buy our bonds in addition to being investors also become agents of development for connectivity development in the eastern region," he concluded.