Download PDFJasa Marga's ( IJ; Rp5,925; Buy) subsidiary, Jasa Marga Pandaan Toll (JPT), issued Rp785bn worth of medium-term sukuk bond in two series. Series A (3-yr sukuk) with Rp100bn face value gives 8.5% fixed rate return and Series B (5-yr sukuk) with Rp685bn face value offers 9% fixed rate return. (Investor Daily).
Comment: JPT booked EBIT and ICR of Rp41bn and 0.6x, respectively, in FY18.This sukuk issuance adds Rp70bn interest payment annually which results to a total of Rp103bn interest expenses. JPT potentially scores lower ICR and higher D/E at 0.5x and 2.9x in FY19F, respectively (vs. the bank's covenant of D/E and ICR at 2.3x and 1x). However, we believe JPT's business remains unaffected as it historically is able to get a waiver from creditor given the strong revenue growth (1Q19 traffic: +51% yoy) and expected higher FY19F EBIT of Rp56bn (+36% yoy) in the foreseeable future. We additionally note that the cost of debt on the issued sukuk is lower than existing bank loan debt at 10.5%.
Sumber : IPS RESEARCH
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