Wika issues medium-term notes worth Rp600 billion

Jakarta (ANTARA News) - Publicly-listed state construction company PT Wijaya Karya (WIKA) has issued medium term notes worth Rp600 billion to develop the businesses of its subsidiaries and entities.

PT WIKA finance director Adji Frimantoro and operations director III Destiawan Soewardjono signed a contract for the issuance of the medium-term notes with PT Mandiri Sekuritas and PT Bahana Securities as arrangers, the company said in a press statement released on Friday.

The three-year notes were issued on Wednesday (November 7) at a coupon of 9.80 percent, the statement said.

Proceeds from the issuance of the medium-term notes, due on November 5, 2017, will be used to develop the businesses of the companys subsidiaries and entities, including improving capital structure by restructuring short-term debts into medium/long-term debts, it said.

The funds will also be used to strengthen the working capital of the company and meet medium-term funding with competitive interest rate.

Local rating agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned its "idA+" rating (Single A Plus; stable outlook) for the companys general obligation rating for the 2013-2014 period.

The idA+ rating reflects that the company has strong capability to meet its long-term financial commitment.(*)