JAKARTA - PT Wijaya Karya (Persero) Tbk (WIKA) will receive extra Letter of Credit (L/C) facility from a syndicate of creditors in order to support its operation. This extra facility is obtained through an addendum and a restatement of a credit agreement for debt restructuring signed yesterday (23/1).

In the information disclosure quoted today (25/1), Mahendra Vijaya, Corporate Secretary of WIKA, mentioned that the additional facility is meant to fund several joint operation and non-joint operation construction projects. “As a part of a debt restructuring and cession process, the company has received an additional LC or Bank Guarantee (BG) facility,” he confirmed.

Regarding the debt restructuring process, WIKA gives L/C and BG creditors a security in the form of fiducia guarantee of unguaranteed account receivables of project (pari passu to all creditors), a pledge of several bank accounts, as well as fixed assets and stock ownership in WIKA’s subsidiaries.

WIKA’s obligations to creditors reached IDR 20.58 trillion, as of December 31, 2023. Both sides agreed to restructure debt and categorise loan payment, which consists of Tranche A, in which including approval to pay outstanding loan, not including interest, which will be allocated to creditors by pro-rate, according to outstanding debt. Trance A’s outstanding debt is IDR 14.16 trillion, maturing on December 23, 2031, and interest rate of 4% per annum.

Then, Tranche B’s outstanding debt id IDR 1.75 trillion, which will mature on December 23, 2029, and an interest rate of 4% per annum. Tranche C’s outstanding debt reached IDR 839 billion as of December 31, 2023, which include interest owed to the creditors. It will mature on December 23, 2025, and the delayed interest payment will be made on each maturing date, and it does not include outstanding debt of L/C and BG facility.

WIKA’s creditors consist of PT Bank Mandiri (Persero) Tbk (BMRI), PT Bank Negara Indonesia (Persero) Tbk (BBNI), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Tabungan Negara (Persero) Tbk (BBTN), PT Bank Syariah Indonesia Tbk, PT Bank HSBC Indonesia, PT BPD Jawa Barat dan Banten Tbk (BJBR), PT Bank ICBC Indonesia dan PT BPD DKI, PT Bank Panin Tbk (PNBN), and Exim Bank. (LK/ZH)