JAKARTA. PT Wijaya Karya Tbk (WIKA) is planning to issue perpetual bonds in the near future, worth around Rp 1 trillion. The Perpetual bond is stage I, from a series of instruments planned for Rp 10 trillion for the next five years.
"The plan will be published next month," said WIKA President Director Tumiyana as quoted by KONTAN, Wednesday (10/17).
The perpetual bond is the first stage of emissions. The company intends to issue perpetual bonds with a maximum ceiling of Rp 10 trillion for the next five years.
Perpetual bonds are bond issuance without due time. However, if during a certain period the publisher does not buy back its emissions, the interest will increase according to the agreement.
Perpetual bond is a source of fresh funding. This instrument is not listed on the debt balance but the company's equity.
In the second quarter of 2018, WIKA's debt to equity ratio (DER) was 0.95 times. This refers to a number of company debts.
This is the reason WIKA chose perpetual bond to maintain the debt ratio. "Until the end of the year, our DER can go down to around 0.8 times, super healthy," added WIKA Finance Director Steve Kosasih on the same occasion.
As of the second quarter of 2018, WIKA's debt was Rp 14.18 trillion, up 61% compared to the same period the previous year at Rp 8.78 trillion. This debt consists of short-term debt, medium term notes and long-term debt. (AM/MS)