Cikarang Listrindo obtains shareholder approval to issue bonds

IDX-listed power company PT Cikarang Listrindo Tbk has secured a permit from public shareholders to issue US$550 million in bonds through its subsidiary Listrindo Capital.

Of the proceeds from the issuance, $500 million will be used to service the company?s debts, thejakartapost.com said.

Cikarang Listrindo Finance Director Christanto Pranata said the remaining $50 million would be spent on underwriting, administrative and legal fees.

After the debt payment, Christanto is optimistic that the company will receive higher revenue this year. The company has allocated $70 million in the first half of 2016 from internal cash and is expected to spend another $60 million in the second semester for capital expenditure.

?We expect to get some new customers in the second half this year,? he said in Jakarta on Friday, adding that the company has been granted a BB rating from global ratings agency Standard & Poor?s (S&P). The rating is two notches below investment grade.

Cikarang Listrindo is the first private-electricity operator that supplies energy to factories in Indonesia since 1993. The company has been fulfilling demand of five industrial estates in Bekasi, West Java, from its gas-fired power plants. The company is building a 280 MW coal-fired power plant in Bekasi which is expected to be completed at the end of 2016. (*)