Waskita Karya Tbk (WSKT) will use internal cash to reduce gearing ratio

BONDS REPAYMENT - JAKARTA. PT Waskita Karya Tbk (WSKT) has prepared IDR 2 trillion to pay off the bonds that will soon be due. Continuous Bonds II Waskita Karya Phase I 2016 will mature on June 10, 2019. The principal value is Rp. 2 trillion with a coupon of 9.25% per year.

Haris Gunawan, Director of Finance of WSKT, said that to pay off the bonds, he would take funds from the company's internal cash. "We use internal cash to reduce the gearing ratio," Haris told Kontan.co.id, Thursday (3/21).

Furthermore, to support funding in 2019, WSKT is currently applying for a permit to issue a fourth sustainable public offering (PUB) worth Rp 5 trillion.

According to him, WSKT will carry out this plan to increase working capital and complete the construction of several toll road projects. The construction company member of the Kompas100 index is aiming for toll road project tenders in West Java and East Java. WSKT targets to get a Rp 14 trillion contracts from the toll road project.

WSKT budgeted capital expenditure of Rp. 26 trillion in 2019. Toll road investment still received the most considerable portion. This year WSKT is targeting at least to work on 4-5 more toll roads.