JAKARTA: State-owned port operator PT Pelindo I plans to upsize its issuance of debt papers this year to Rp 1 trillion (US$76.9 million) from an initial target of Rp 300 billion to develop ports in support of the government’s maritime-axis vision.
Pelindo I president director Bambang Eka Cahyana said that his firm aimed to reap a maximum of Rp 1 trillion from the bond market this year, more than triple its previous target.
“If it [the bond offering] is successful, we will aim for Rp 1 trillion […] Mandiri Sekuritas will likely become our underwriter for the issuance,” he told reporters after a celebration for the State-Owned Enterprises Ministry’s 17th anniversary here the other day.
The bonds might be issued at once or at separate times, but they would definitely be divided into three series those maturing in three, four and seven years so that the coupon rates were not too high and burdened the company’s finances in repaying, he went on.
Bambang refused to detail when exactly the debt papers would be issued, but he previously stated that his firm would offer bonds sometime in the second semester of this 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’s total debt stood at around Rp 70 billion and its equity hit Rp 3.7 trillion, meaning that the firm still had a wide space for external funding, he added.
The company, which currently operates 21 ports in the country’s northwestern region, plans to use the proceeds from the bonds issuance to modernize and develop some of its existing ports, particularly one in Kuala Tanjung, North Sumatra.
Pelindo I will develop its Kuala Tanjung Port in four stages to eventually make it into a port city with a Rotterdam concept.
The firm targets to complete the first and second development phases by 2018 and 2019, respectively.
Under its corporate plan, Pelindo I aims to construct a liquid bulk multipurpose terminal in the first development phase and an industrial estate in the second development phase.
The multipurpose terminal is set to have a total capacity to accommodate 3.5 million tons of palm oil, 4,000 twenty-foot equivalent units (TEUs) of cargo and 1 million tons of dry bulk.
Other than possible funding from the bond issuance, Pelindo I has also secured commitment for a Rp 1 trillion-revolving loan facility from state lender Bank Mandiri and a Rp 1 trillion-revolving facility from Bank Rakyat Indonesia (BRI) that will enable the port operator to decide how often it wants to withdraw the loans and at what intervals of time.
The firm plans to allocate a total of Rp 3.2 trillion for its capital expenditure (capex) this year, including from the bank loans and Rp 1.2 trillion from its internal cash.
Pelindo I has estimated that it will require a total of Rp 34 trillion to finance its port development projects over the next five years to support the government’s maritime-axis vision, including for Kuala Tanjung Port.
The company aims to grow its revenues and net profit by 15 percent and 10 percent, respectively, this year.
