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Waskita Beton and Intiland conduct debt reprofiling

06 September 2019 06:44

JAKARTA. PT Waskita Beton Precast Tbk (WSBP) and PT Intiland Development Tbk (DILD) are two of the companies that take advantage of lower interest rates to reprofile their debts and lower interest. 

PT Intiland Development Tbk (DILD), for example, hopes that the newly issued sukuk can reduce interest rates from 15% to 10.5% -11.5%.

PT Waskita Beton Precast Tbk (WSBP), which plans to issue bonds in October 2019, also thinks the same. "The funds will be used to reprofile bank loans with short tenors," said Director of WSBP, Anton Y. Nugroho.

The tenor of WSBP's bank loan is only one year, even though its projects are long-term ones. In addition, WSBP wants to take advantage of low-interest trends.

Vice President of Artha Sekuritas Frederick Rasali believes that funding through bonds is quite interesting. "Now liquidity is quite tight and the outlook for interest rates is still down," he explained, Thursday (5/9). Bond issuers can get low interest. 

Frederick advised that companies that issue bonds must still maintain their business fundamentals and resilience. These two things will be considered by investors, especially amid the threat of recession. (AM/AR)

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