Ciputra Development to float Rp 150b in bonds next month<\/p>\n
JAKARTA (JP): Publicly listed PT Ciputra Development, a major
\nproperty company, will float five-year bonds worth Rp 150 billion
\n(US$65 million) for three days from July 8.<\/p>\n
\"We'll use the proceeds from the bond issuance to refinance
\nour short-term debt,\" Harun Hajadi, a director of Ciputra
\nDevelopment, said yesterday after the bonds issuance was made
\npublic.<\/p>\n
He said that the company's short-term debt -- commercial
\npapers with maturity of less than one year -- amounts to Rp 150
\nbillion.<\/p>\n
Harun noted that his company has not yet decided on the
\ninterest rate of the bonds. \"We will announce it on June 24. The
\nrate will be fixed but the rate will be based on the prevailing
\nmarket rate if the latter is higher than the fixed one,\" he said.<\/p>\n
According to him, the bonds issue date will be on July 17 and
\nthey will be listed on the Surabaya Stock Exchange on July 23.<\/p>\n
Harun pointed out that the bonds offer both put and\/or call
\noptions. The put option gives investors the right to sell the
\nbonds back to the issuer -- Ciputra Development -- three or four
\nyears after the issue date. The call option makes the bonds
\nredeemable on demand.<\/p>\n
\"The issuance of bonds is very important for Ciputra
\nDevelopment. In accordance with short and long-term strategies,
\nCiputra Development will always search for competitive
\nalternative financing,\" he said.<\/p>\n
The arranger and lead manager for the bonds are PT BT Prima
\nSecurities Indonesia and PT Danareksa Sekuritas. PT Bank Dagang
\nNegara was appointed the trustee and paying agent.<\/p>\n
Harun, who claimed that Ciputra Development is one of the
\nlargest and most profitable property companies in the country,
\nsaid the bonds have received a BBB rating from the Indonesian
\nrating company PT Pefindo.<\/p>\n
Ciputra Development saw its total revenue increase by 20
\npercent to Rp 513.9 billion last year, while its gross profit
\ngrew by 18 percent to Rp 161.4 billion.<\/p>\n
Harun said his company expects to see a profit increase of 23
\npercent this year.<\/p>\n
Ciputra Development -- the holding company for Ciputra's
\nproperty development -- was established by Ciputra in 1981 and
\nwas listed on the Jakarta and Surabaya Stock Exchanges on March
\n1994. Currently, its market capitalization is valued at US$6
\nbillion. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ciputra-development-to-float-rp-150b-in-bonds-next-month-1447893297",
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"sponsor": "Okusi Associates",
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