Indonesia: Power producer Cikarang Listrindo to raise $550m via bonds

Photo by Cikarang Listrindo

PT Cikarang Listrindo Tbk (POWR) is looking to raise $550 million through a corporate bond to repay its previously issued notes, as well as increase cash flows.

The notes, launched in 2012 by Cikarang’s subsidiary Listrindo Capital, has 6.95 per cent coupon and will mature in 2019.

According to an official prospectus, the company will offer the new bonds to international investors. Subsequently, these bonds will be listed on the Singapore Stock Exchange (SGX). 

“The coupon will be set at maximum 8 per cent,” management of Cikarang Listrindo said in the statement.

Cikarang Listrindo raised Rp 3.75 trillion ($275.74 million) when it went public in May, selling 2.5 billion shares at Rp 1,500 apiece, and becoming the country’s first independent power producer to list on the bourse.

Lead underwriters for the issue were PT Indopremier Securities, PT Citigroup Securities Indonesia, PT Deutsche Securities Indonesia, and PT UBS Securities Indonesia. 

The final IPO price equals 7.3 times EV/EBITDA (enterprises value divided by earnings before interest, tax, depreciation and amortization) for the financial year or price to earning at 12 times of 2017 earnings.

The West-Java based firm plans to use the proceeds to expand its generation capacity and other general corporate purposes. Last year, Cikarang Listrindo and General Electric inked a $600-million deal for power plant developments, during President Joko ‘Jokowi’ Widodo’s visit to the US.

In order to cope with increasing electricity demand, Cikarang is building a new 280 MW coal-fired power plant that is expected to complete by the end of this year. Completion of the new plant will boost the company’s total installed capacity by 32% to 1,145 MW.

Also Read:

Cikarang Listrindo raises $275m, becoming Indonesia’s largest IPO in 2016

M&A in Indonesia sees 72% jump in H1, significant recovery in IPO, PE/VC deals

Indonesian market set for seven IPOs, 21 bond offers & nine rights issues

Indonesia: ABMA Properties to divest 35% stake via IPO

Indonesia theme park operator Graha Propertindo eyes $25.9m IPO

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.