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Indonesian construction firm Hutama Karya plans 5.5 trln rupiah bond issue
February 20, 2017 / 11:36 AM / 9 months ago

Indonesian construction firm Hutama Karya plans 5.5 trln rupiah bond issue

JAKARTA, Feb 20 (Reuters) - State-owned Indonesian construction firm PT Hutama Karya plans a 5.5 trillion rupiah ($412 million) bond issue in April, aiming to tap into funds being repatriated under the country’s tax amnesty programme, the finance ministry said on Monday.

The government will guarantee the bonds and the finance ministry said investors buying them would help support government efforts to accelerate infrastructure development in Indonesia.

Hutama Karya has met with bankers, fund managers and traders to promote investment in the bonds, the ministry said in a statement.

The company is building a toll road connecting major cities on the Indonesian island of Sumatra, in a project worth 82 trillion rupiah.

The tax amnesty, which started last July and runs until March, aims to provide the government with billions of dollars in revenue to help cover a large fiscal deficit.

Participants, including some of Indonesia’s wealthiest citizens, have pledged to transfer back home 141 trillion rupiah of funds they previously kept offshore, according to data from the finance ministry.

Assets brought home must be kept in Indonesia for three years. ($1 = 13,353.0000 rupiah) (Reporting by Gayatri Suroyo; Editing by Susan Fenton)

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