First Time Published, Global Bonds Hutama Karya Gaining World Investor Trust

JAKARTA - For the first time, PT Hutama Karya (Persero) (Hutama Karya) officially issued global bond instruments in US dollars or Global Bonds on Monday (4/5) in the amount of USD 600 million or equivalent to Rp 9 trillion (exchange rate of Rp 15,000 per US Dollar). Global bonds with a tenure of 10 (ten) years with a coupon of 3.75% were welcomed enthusiastically by market investors in 3 Continents, including Asia by 42%, Europe, the Middle East, and Africa by 30% and America by 28%.

Director of Hutama Karya Bintang Perbowo stated that the interest of investors from all over the world is quite positive. "We can see that the price of the Hutama Karya coupon is very competitive even in the middle of this difficult situation," said Bintang.

Furthermore, Bintang said that this was a pretty good achievement for the company, especially in conditions like this. "Even though we are in the midst of an economic downturn due to the Covid-19 epidemic that is sweeping across the world, we can still win the trust of world investors, even successfully recording nearly 5.8x oversubscribed." Hutama Karya realizes that the process of issuing Global Bonds when such is not an easy thing, where companies have to do optimization especially during the roadshow process conducted by the company through the Virtual Conference method.

Hutama Karya became the next State-Owned Enterprise (SOE) which issued bonds in US dollars after several other SOEs had succeeded in doing the same thing such as Pertamina, Jasa Marga, and PLN. Previously, Hutama Karya was also assigned an Investment Grade rating by 2 international rating agencies, Moody's and Fitch in April, namely the Corporate Rating BBB- / AA + (IDN) from Fitch and Baa3 from Moody's, while the BBB Bond Rating from Fitch and Baa2 from Moody's.

The results of these Global Bonds will be used to support the Hutama Karya Mission in completing the Government's mandate to build and develop the Trans Sumatra Toll Road (JTTS) for the Binjai - Langsa, Bukit Tinggi - Padang, Pekanbaru - Bukit Tinggi, Indralaya-Muara Enim, Lubuk sections Linggau- Bengkulu and Sigli-Banda Aceh sections.

When the JTTS project is completed, Hutama Karya will become the largest toll road operator in Indonesia. Because the mega project is a toll road project with a total length of more than 2,765 kilometers. Not only focusing on the builders of JTTS alone, but Hutama Karya is also still present to connect the goodness with other infrastructure development. "The development of the construction industry has a strategic role as a driver of national economic growth. The right and quick step to take advantage of opportunities and company performance efficiency is the key to facing local and global competition, both with fellow SOEs, the private sector, to foreign contractors, "explained Bintang.

Since 2014, Hutama Karya has been given a mandate by the government to build and develop the 2.769 km Trans Sumatra Toll Road (JTTS) through Presidential Decree No. 100 of 2014 which was later renewed to Presidential Regulation No. 117 of 2015. Until now ± 500 km of toll roads in JTTS have been built with 368 km of toll roads fully operational. Some of the toll roads include the Bakauheni-Terbanggi Besar (Bacter) toll road along 140 km, the Terbanggi Besar-Pematang Panggang-Kayu Agung (Terpeka) toll road along 189 km, the Palembang-Indralaya (Palindra) toll road along 22 km, and the Medan-Binjai toll (Medbin) along 17 km.

As for 2020, Hutama Karya is targeting the completion of the JTTS construction to continue for several priority sections, including the Pekanbaru-Dumai toll road along 131 km where construction progress has reached 97% on average, followed by Sigli-Banda Aceh toll road section 4 Indrapura-Blang Bintang with a length of 13.5 km whose construction progress has reached 99% on average and finally, the Medan-Binjai section 1 section of the 6 km toll road is targeted for completion in July 2020.

SEVP of Corporate Secretary
PT Hutama Karya (Persero)
Muhammad Fauzan

Media Inquiry:
Diamond Zania
Vice President of Corporate Communication
PT Hutama Karya (Persero)
Mobile Number: 08121160408

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