TEMPO.CO, Jakarta - State-owned construction company Wijaya Karya (Persero), known as WIKA, is aiming to raise Rp5 trillion in bond offering. The company has yet to choose the types of bonds to be offered.
WIKA Finance Director Antonius N. Steve Kosasih said that the company will issue bonds as part of a sustainable public offering (PUB).
Antonius said that bonds may be issued at least at by year-end or next year.
According to Antonius, the company is also exploring the possibility to issue rupiah-denominated bonds. However, the company’s rating will be examined first and foremost.
The company will pick long-term, 5-7 years financing instruments, Antonius said. WIKA have been working on long-term projects. "If we use short-term financing, we will suffer a loss," he said.
Antonius added that the funding raised from bond issuance will be used to finance projects that cannot be financed by bank loans. That include land acquisition fund for power plant projects.