Bulletin: PT Kawasan Industri Jababeka Tbk.'s Proposed Consent Solicitation Has Minimal Impact On Cash Flows

SINGAPORE (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings said today that PT Kawasan Industri Jababeka Tbk.'s proposed consent solicitation will have a minimal impact on the company's interest expenses and cash flows. Therefore, our rating and outlook on Jababeka (B/Stable/--) are unaffected. The consent solicitation is for an amendment to the structure of the special-purpose vehicle that issued Jababeka's guaranteed US$300 million senior unsecured notes due 2023, following regulatory changes in Indonesia and the Netherlands. As a result of the amendment, Jababeka will need to pay an additional US$4 million per year in withholding tax. At the same time, the amendment will likely reduce the company's overall annual tax payable by about US$6 million over 2018 and lower the

...SINGAPORE (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings said today that PT Kawasan Industri Jababeka Tbk.'s proposed consent solicitation will have a minimal impact on the company's interest expenses and cash flows. Therefore, our rating and outlook on Jababeka (B/Stable/--) are unaffected. The consent solicitation is for an amendment to the structure of the special-purpose vehicle that issued Jababeka's guaranteed US$300 million senior unsecured notes due 2023, following regulatory changes in Indonesia and the Netherlands. As a result of the amendment, Jababeka will need to pay an additional US$4 million per year in withholding tax. At the same time, the amendment will likely reduce the company's overall annual tax payable by about US$6 million over 2018 and lower the tax exposure going forward. If the consent solicitation does not go through, we believe Jababeka's cash flows can absorb the additional tax payment. Jababeka's property sales this year were in line with our expectation....

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