Indonesian port operator Pelindo I to raise bond issue to $77m

2015-04-16

Indonesian state-owned port operator Pelindo I plans to upsize its bond issue to IDR1trn ($76.9m) from an initial target of IDR300bn, local reports said.

Pelindo I president director Bambang Eka Cahyana said it aimed to riase a maximum of IDR1trn from the bond market this year, more than triple its previous target.

The bonds might be issued in one or several tranches, said Bambang while declining to reveal the timing of the issuance. He added however that they would definitely be divided into three series, with maturities over three, four and seven years so that the coupon rates were not too high. Bambang has previously suggested bonds will likely be issued in the second half of the year.

“It will all, however, depend on how Mandiri Sekuritas arranges the issuance,” Bambang said, adding that his firm was assigned a double-A rating by local credit rating agency PT Pemeringkat Efek Indonesia (Pefindo).

Pelindo I currently operates 21 ports in Indonesia's northwestern region and plans to use the proceeds from the bonds issuance to modernize and develop some of its existing ports, especially at Kuala Tanjung in North Sumatra.

Pelindo I will develop its Kuala Tanjung Port in four stages, with completion of the first and second development phases targetted by 2018 and 2019, respectively.

Pelindo I plans to allocate a total of IDR3.2trn for its capital expenditure (capex) this year, including from bank loans and IDR1.2trn from internal cash. It has estimated that it will require a total of IDR34trn to finance its port development projects over the next five years to support the government’s maritime-axis vision, including for Kuala Tanjung Port.

Source from : Seatrade Global

HEADLINES