Aug 23, 2011

Nusantara to refinance Rp750 bio debts

Toll road operator PT Nusantara Infrastructure Tbk (META) intends to refinance Rp750 billion debts to PT Bank Mega Tbk using new loan facility from PT Bank Central Asia Tbk (BCA).
The debts are coming from its subsidiaries namely PT Bintaro Serpong Damai of Rp360 billion, PT Bosowa Marga Nusantara of Rp40 billion, and PT Jalan Tol Seksi Empat of Rp350 billion.
Bintaro Serpong Damai is the operator of Bintaro-Bumi Serpong Damai toll road and Jalan Tol Seksi Empat is the operator of the fourth session toll road in Makassar, Sulawesi.
According to Finance Director Danni Hasan, the new facility bears lower interest rate than the existing debt. BCA provides interest rate of 9.75% in the first year, and cost of funds plus 4.25% onward, while Bank Mega's loan facility has charged interest rate of above 13% annually.
With the refinancing, Nusantara Infrastructure enables to put down the interest payment of Rp25 billion. "The cost efficiency is 25% of the total interest of Rp100 billion."

Disclosure: No position at the stock mentioned above.

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