Apexindo issues S$100m bonds end-2015
Capex set at $15m this year
Thursday, June 25 2015 - 01:02 AM WIB
IDX-listed PT Apexindo Pratama Duta Tbk plans to issue global bonds worth around S$75-100 million at the end of 2015, according to a senior official of the firm.
"The issuance of the bonds is the first part of our bond program worth S$500 million," said General Manager of Corporate Finance & Investor Relations at Apexindo, Paolo Kartadjoemena during the company?s analysts and investors meeting in Jakarta.
Apexindo has appointed DBS Bank, Standard Chartered Bank and HSBC as arrangers. The bond?s tenor is estimated to be three years with an interest rate expected at 6 to 6.5 percent, said Paolo, adding that a number of large banks are expected to get involved, including PT Bank Rakyat Indonesia (BRI), Standard Chartered Bank, Exim bank, DBS Bank and QNB.
He said the bond funds will be used for the refinancing of syndicated loan from 10 banks.
"Actually, the syndicated loans will mature in 2018. However, we decided to repay them more quickly because we see oil prices have not improved. The total value of the loan facilities reached US$400 million," he said.
According to Paolo, if the issuance of the bond goes well, the company will issue more bonds. He estimated that the S$500 million bond issuance program will be completed in two or three rounds of issuance.
Paolo also said the firm is preparing around US$10-15 million for capital expenditure, significantly lower than last year's capital expenditure of $175 million.
"Last year, our capex was large enough because we needed to purchase a new jack-up rig. This year we shall only conduct maintenance. The capex will bused to vessel and equipment maintenance,? he said.
The company targets revenue at Rp 2.5 trillion for this year, up 20 percent from last year?s, thanks to among others the operation of its new rig named Tasha at a Petronas? field in Malaysia. The firm now has a total of 13 rigs.
Editing by Johannes Simbolon