Jasa Marga needs IDR10 trillion of external funds

JAKARTA. PT Jasa Marga tbk (JSMR) in 2017 needs an IDR10 trillion of external funds to refinance its debts.

Director of Finance at JSMR Anggiasari Hindratmo said that the debt refinancing will include the debts of JSMR subsidiaries PT Marga Lingkar Jakarta (MLI) and PT Jasa Marga Bali Tol (JBTY).

Financial report of JSMR shows that during the first semester of 2016, the company has bond debt and bank debt at amounts of IDR2.9 trillion and IDR2.5 trillion that will due in one year.

As per the first semester of 2016, JSMR’s subsidiary Marga Lingkar Jakarta has IDR1.3 trillion of balance of the credit facility from Bank Mandiri and Bank DKI. The credit facility was signed in 2011 with a 10% of interest rate during the first year.

Meanwhile, Jasamarga Bali Tol has an IDR1.23 trillion of credit from the syndication of Bank Mandiri, BNI, BRI, BCA, BTN, and BPD Bali. The credit facility was signed in 2012 with a 10% rate in the first year. Jasamarga Bali Tol also has an IDR5.1 billion of credit from Bank Mandiri that will due in June 2017.

Aside of external funding, JSMR is considering to raise funds from bank credit or bond credit under the scheme of Sustainable Public Offering (PUB). “We need a large amout of external funds for credit refinancing and other work capitals”, Anggia said.

JSMR will also raise additional funds from limited public offering (PUT) through pre-emptive right issue for the corporate’s business expansion. JSMR expects to raise IDR1.78 trillion by releasing 491.4 million of shares with the price of IDR500 per a share. “We will execute the plan in November”, Anggia said.

JSMR will allocate the funds to three toll road projects at the lanes of Semarang-Batang (756 km), Pandaan-Malang (36.5 km), and Jakarta-Cikampek II (64 km).

Furthermore, JSMR will also monetize its assets by divesting its subsidiaries’ stakes.

Anggiasari predicts that in 2017  Jasa Marga will need an IDR28 trillion of capital expenditure, or doubled from IDR13.098 of capital expenditure in 2016.

Analyst at Danareksa Sekuritas Maria Renata predicts that JSMR will operate a total length of 36 km and 326.1 km of new toll roads by 2016 and 2017, respectively. By the end of 2017, Jasa Marga will have operated a total length of 954.1 km of toll roads.  

Maria estimates that JSMR’s income will increase by 10.4% to IDR22.69 trillion in 2017. Therefore, she recommends investors to buy JSMR share at the rate of IDR5,700 per a share. On Friday (30 September), JSMR share closed lower by 2.34% to IDR4,600 per a share.

(Muhammad Farid/Translator)