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GIC, MPTC take US$1 billion stake in Java toll road
Investment allows Indonesian firm to raise capital, maintain healthy leverage, expand
The Asset 10 Jul 2024

Singapore sovereign wealth fund GIC and the Philippine toll road provider Metro Pacific Tollways Corporation (MPTC) have entered into an investment agreement for a 35% stake in Jasamarga Transjawa Tol (JTT), a subsidiary of Indonesian state-owned toll road operator, Jasa Marga.

Worth about US$1 billion, the investment will allow Jasa Marga to raise capital, maintain a healthy leverage level and continue expanding its toll road network across Indonesia.

By bringing in MPTC and GIC as partners, Jasa Marga says it can maintain full control over JTT’s strategic infrastructure assets and solidify the quality of its services.

HSBC served as the joint financial adviser to MPTC and sole financial adviser to GIC for this transaction, while BCA Sekuritas acted as the joint financial adviser to MPTC.

JTT is a network of 13 toll roads in the provinces of West, Central and East Java. The combined 676-kilometre-long road is considered Indonesia’s crown jewel that allows the efficient flow of 850,000 vehicles daily across Indonesia’s economic powerhouse of Java Island.

The addition of JTT toll roads will further boost MPTC’s portfolio to 1,130 kilometres, connecting various economic zones in the Philippines and Indonesia.

Last year, GIC purchased a 33% stake in the MPTC subsidiary Margautama Nusantara (MUN) for US$209.9 million. Hence, MPTC’s stake in MUN has decreased to 60.3%.

“This deal fortifies MPTC’s goal to expand in Southeast Asia and enhance our infrastructure portfolio,” says Rogelio Singson, MPTC president and CEO. “This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations.”

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