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Investor Daily - Adhi Karya siap tawarkan obligasi Rp5 triliun
2 April 2024
By Muawwan Daelami
PT Adhi Karya Tbk (ADHI) is poised to issue bonds worth Rp5 trillion through Continuous Public Offer IV, scheduled for execution from this year until 2026. The bond issuance aims to facilitate refinancing and provide working capital.
Adhi Karya President Director Entus Asnawi Mukhson said that the continuous public offer was the fourth one worth Rp5 trillion to be offered within three years.
“So, Rp1 trillion in 2024, Rp2 trillion in 2025, and Rp2 trillion in 2026,” Entus said at a press conference after the annual shareholders general meeting at ADHI Head Office in Jakarta (1/4/2024).
Entus explained that ADHI set to raise between Rp1 trillion to Rp2 trillion from the continuous public offer in 2024 and 2025. These funds will be utilised to facilitate the refinancing of mature bonds.
This year, the issuer with the ticker code ADHI will face two mature bonds. The first one is Continuous Bonds II Phase II Year 2019 Series B worth Rp473 billion maturing on 25 June 2024, then the second one is Continuous Bonds III Phase II Year 2021 Series B worth Rp473 billion maturing on 24 August 2024.
In addition to refinancing, the funds raised from the bond offer will also serve as working capital for ADHI and support its participation in public-private partnership (PPP) projects. Through this continuous public offer, the company anticipates an enhancement in liquidity and solvency, alongside more efficient production costs that ensures the completion of projects and fosters continuous business growth.
Meanwhile, the Rp2 trillion worth of bonds that ADHI plans to offer in 2026 will be used by the company to reprofile its bank debts, aiming for a more extensive and favourable profile.
“We are addressing long-term debt obligations by consistently issuing bonds worth Rp3 trillion, Rp5 trillion, and Rp7 trillion, ensuring that their maturity dates are evenly distributed,” he said.
Therefore, Entus believes that ADHI's annual debt exposure will be more balanced. Currently, ADHI's debt structure consists of bank debts and bonds with a ratio of 45:55. Bank debts currently comprise a larger portion compared to bonds, primarily due to unresolved debts from syndicated banks.
“However, after the debts from syndicated banks are resolved, ADHI’s debt composition will be balanced at 50:50 between bank [debts] and bonds,” Entus said in an optimistic tone.
On a separate occasion, ADHI Karya Coprorate Secretary Farid Budiyanto ensures the company's commitment to fulfil all of its obligations, including paying coupons for mature bonds.
“ADHI never fails to pay its mature bonds,” Farid said to Investor Daily.
Hence, to pay its mature bonds this year, ADHI will utilise funds from the issuance of Continuous Public Offer IV and the company’s internal cash. “So, there is no restructuring for ADHI,” he affirmed.
Abstain from distributing dividends and revamping management
On the other hand, ADHI Karya's annual general meeting of shareholders decided not to distribute dividends to shareholders from the company’s profit in fiscal year 2023, which amounted to Rp214 billion. This profit marks a 163.42% increase from the company’s net profit in fiscal year 2022, which stood at Rp81.24 billion.
Entus revealed that the management proposed to distribute dividends. However, shareholders have yet to give the greenlight as the industry’s condition is still challenging.
“20% of the net profit, amounting to Rp42.8 billion, is allocated for mandatory reserve funds, while the remaining 80%, totaling Rp171.2 billion, will be retained as earnings,“ he added.
In addition to refraining from distributing dividends, the state-owned construction issuer also opted to overhaul its management. During the annual shareholders' general meeting, the following decisions were made regarding the board of commissioners, Bob Arthur Lambogia was promoted as Commissioner, replacing Widiarto, Abdul Mudi was removed as Independent Commissioner, and Elan Suherlan and Rustam Sofyan Sirait were appointed as Independent Commissioners.
In terms of the board of directors, ADHI’s annual general meeting of shareholders set to promote Harimawan as Operations Director II to replace Punjung Setya Brata and appoint Vera Kirana who was previously the QHSE and Business Development Director to be Operations Director III. Next, the meeting also decided to promote Bani Iqbal as Finance Director to replace Bambang Krisminarno and appoint Yan Arianto as Risk Management and System Director.
