Indonesia’s Waskita, banks agree on $2.05 billion debt restructuring, ET RealEstate
JAKARTA: Indonesian state-controlled builder Waskita Karya has reached a debt restructuring deal with more than 20 banks covering 31.5 trillion rupiah ($2.05 billion) of loans, Waskita President Director Muhammad Hanugroho said on Friday.
The company’s finances were hit hard by the impact of the COVID-19 pandemic and after it took on a lot of debt to fund a government-led infrastructure push.
The restructuring terms for most of those loans include lowering interest rates payable on the loans to 3.5% per annum from 5% and extending their maturities to 2032, Muhammad said.
For 5.2 trillion of the restructured loans, the extension is for 2 years to 2026.
Waskita had outstanding loans of about 32 trillion rupiah and outstanding bonds worth 9.8 trillion rupiah as of June, according to a June quarter update published on its website.
Muhammad said the company had restructured 3 trillion rupiah worth of bonds in March and the first interest payment under new terms was made in June, while another 1.3 trillion rupiah were still in negotiation.
Waskita’s shares have been suspended on the stock exchange since last year, after it delayed a coupon payment on bonds maturing in 2024.
The government has said that after the debt restructuring is completed, Waskita will become a unit of another state construction firm, Hutama Karya, which will take over its toll road projects.
