Reporter: Narita Indrastiti | Editor: Barratut Taqiyyah Rafie
JAKARTA. PT Cikarang Listrindo Tbk (POWR) through its Singapore-based subsidiary Listrindo Capital B.V released a worth of US$550 million of global bond with coupon rate at 4.95%.
According to information from Singapore Stock Exchange (13/9), the obligation has a 10-year tenure with Barclays Bank Plc and Deutsche Bank AG as the lead managers and bookrunners, respectively.
Funds received from the bond’s issuance will be allocated to settle a worth of US$500 million (with 6.95% rate) of previous bond that will mature by 21 February 2019.
Recently, S&P has increased the ranking of POWR’s long term corporate loan and 2019 bond from ‘BB-‘ to ‘BB’.
Finance Director at POWR Christanto Pranata said that the company expects to decrease the interest rate and extend the tenure of its debts by releasing the new bond.
Until the First Semester of 2016, POWR debts only come from the corporate bond, which was released in 2012. Most of the company’s short-term liabilities come from accounts payable.
Previously, POWR has gained IDR 2.4 trillion of funds from initial public offering (IPO) that will be allocated to launch some expansions in the next year.
This year, POWR has prepared US$130 million of capital expenditure During the first semester of 2016, POWR has absorbed US$70 million of the total amount of capital expenditure. The rest US$60 million will be allocated to coal-fired power plant project in Babelan, Bekasi, West Java.
The power plant, which has 280 MW of capacity, is built with a worth of US$475 million of investment. Recently, the project is nearing 80% of completion. By operating the power plant, at the end of 2016, POWR will have 1,144 MW of total installed electricity capacity.
Head of Research Department at NH Korindo Securities Reza Priyambada said that the release of the gobal bond will decrease POWR’s interest rate burden, as well as make the company becomes more competitive. He added that the power plant project will increase the performance of POWR and suggested to buy POWR shares.
It is expected that the price for every share of the company will stand in the range of IDR1,800 to IDR2,000. Yesterday, POWR’s share price drop by 0.69% to IDR1,440. (Translator: Muhammad Farid)
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