TEMPO.CO, Jakarta - State-owned contractor PT Waskita Karya is targeting to obtain Rp23 trillion (US$1.75 billion) loan from banking and bond issuance to finance electricity transmission and toll road projects. Waskita Karya finance director Tunggul Raja Gukguk expressed optimism that the company would the capital injection through the right issue mechanism of Rp5.3 trillion (US$407.5 million), increasing the company’s equity from Rp2.8 trillion (US$215.4 million) to Rp 9 trillion (US$692.3 million).

“The toll road and [electricity] transmission projects this year would cost Rp23 trillion (US$1.75 billion,” Tunggul said on Friday, April 24, 2015.

Half of the fund for the project will be obtained from bonds and the rest of it will be sourced from bank loans. Waskita Karya still has a continuous public offering of Rp1.5 trillion (US$115.4 million) that will be issued in September this year.

The issuer of stock is optimistic that it will obtain the fund from the right issue by the end of June 2015, increasing the company’s equity and loan space by Rp18 trillion (US$1.4 billion). The right issue will also boost new projects that the company will be working on this year. The company has set a target to achieve a net profit of Rp1 trillion (US$76.9 million) this year upon the disbursement of the right issue fund.

The state-owned company has bagged net profit of Rp11 billion (US$846,153) by the first quarter of 2015, increasing by 83 percent compared Rp6 billion (US$461,538) achieved in the same period of last year. The company’s revenue jumped by 35 percent to Rp1.4 trillion (US$107.7 million) in January-March 2015.

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