Wijaya Karya to restructure Rp13 trillion bank loans
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Wijaya Karya restrukturisasi utang bank Rp13 triliun
28 November 2023
Jakarta - PT Wijaya Karya Tbk (WIKA) will ask for an approval from 15 banks that consist of banks in the Association of State-owned Banks (Himbara) and non-Himbara banks to restructure their debt that reaches a total of Rp13 trillion. Currently, the company is still negotiating with the bank creditors to obtain an approval for the restructuring.
WIKA Financial and Risk Management Director Adityo Kusumo mentioned that the negotiation was important as the construction sector is a business that heavily relies on bank support, especially as banks can provide a guarantee. “With the facility, we are optimistic about working on government projects, such as Nusantara Capital City (IKN), in the long term. We will still pay off our debt in instalments in the future,” Adityo said during a public exposure on Monday (27/11/2023).
He said that the restructuring effort was the company’s strategy to combine transformation and negotiation with the creditors. It is also the company’s effort to divest their assets optimally.
Hence, for 2024, Adityo emphasised that the company would focus on government and state-owned enterprise (SOE) projects as well as projects with risks that can be tolerated by the company. “Then, the payment structure is anticipated to incorporate down payments and to be made monthly, aligning with the progress of the constructio,” he said.
Based on the consolidated financial statements dated 30 June 2023, WIKA’s short-term debts are distributed among several entities. They owe Rp3.8 trillion to PT Bank Mandiri Tbk (BMRI), Rp1.5 trillion to PT Sarana Multi Infrastruktur, Rp990 billion to PT Bank Negara Indonesia Tbk (BBNI), and Rp504 billion to PT Bank Rakyat Indonesia Tbk (BBRI).
Meanwhile, their obligations to non-Himbara banks include a debt of Rp1.4 trillion to PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and Rp982 billion to PT Bank HSBC Indonesia. In terms of bonds, the company has issued the Wijaya Karya Continuous Bonds I Phase I Year 2020 Series A. These bonds, valued at Rp331 billion, are set to mature on 18 December 2023.
WIKA Corporate Secretary Mahendra Vijaya revealed that the restructuring approval from bank creditors was still being negotiated. Meanwhile, the mechanism to settle the company’s obligations to bondholders will be decided at the general meeting of bondholders (RUPO) on 28 November 2023. The purpose of the meeting is to request for a covenant waiver as it will most likely be missed in the 2023 financial statement.
