Indonesian Port Operator Pelindo II May Sell Bonds in 2013
Pelabuhan Indonesia II, a state port operator, is reviewing an option to sell bonds in the first half of next year to help finance the construction of New Priok Port in Kalibaru, North Jakarta.
Mulyono, finance director of the port operator known as Pelindo II, said that selling bonds is one of the alternatives to finance construction of the port. Bank loans are another possibility.
Mulyono said the company has secured loans valued at Rp 1 trillion ($105 million) from Bank Mandiri and Bank Negara Indonesia — each pledging Rp 500 billion.
“Since we have secured the loans, selling bonds will be conducted next year,” Mulyono said, without disclosing other terms.
Mulyono said that total investment to build New Priok Port is estimated at $4 billion: $2.5 billion in the first phase and $1.5 billion in the second phase. The construction of the first phase is expected to be completed in 2014, while the second phase will start in 2018 and is expected to be completed in 2022.
Mulyono said the company plans to finance 20 percent of the project from its cash, 35 percent from investors and the remaining 45 percent from external funding. The development of the first phase will include construction of three container terminals with a combined capacity of 4.5 million twenty foot equivalent units (TEUs).