Hutama Karya’s Offering of IDR 1.5 Trillion in Bonds and Sukuk Oversubscribed by 3.9 Times

Indonesian state-owned construction company Hutama Karya has issued a total value of IDR 1.5 trillion of securities, made up of Sustainable Public Offering (PUB) of Bonds II Phase I 2021 worth IDR 1 trillion and Sustainable Sukuk Mudharabah I Phase I 2021 worth IDR 500 billion. According to local media reports dated 14th of September 2021, the issuance was oversubscribed by 3.9 times.

Why it Matters?

Through the issuance of these securities, the company will change its loan profile to long-term loans from short-term loans, according to Tjahjo Purnomo, Corporate Secretary Executive Vice President of Hutama Karya. Meanwhile, Budi Harto, President Director of Hutama Karya, stated that the company was continuously trying to diversify external funding so...