JIHD to float Rp 600b in bonds<\/p>\n
JAKARTA (JP): Publicly listed PT Jakarta International Hotels
\nand Development (JIHD) will float five-year bonds worth Rp 600
\nbillion (US$250 million) next month.<\/p>\n
JIHD's director of finance, Budiman Effendi, said here
\nyesterday that the bonds would strengthen the company's financial
\nstructure and help finance its property projects.<\/p>\n
The bonds, the first issued by the company, will have a fixed
\ncoupon rate of between 15.85 percent and 16.25 percent. The
\ninterest would be paid twice a year, he said.<\/p>\n
He said Indonesian rating agency Pefindo had given the
\ncompany's bonds issue a BBB-rating.<\/p>\n
He said PT Danareksa Sekuritas and PT Trimegah
\nSecurindolestari would be the lead underwriters of the bonds,
\nwhich would be offered from July 7, and be listed on the Surabaya
\nStock Exchange on July 22.<\/p>\n
\"We'll convert the proceeds from the bonds into U.S. dollars,\"
\nBudiman said at the company's public expose of the bonds.<\/p>\n
He said his company would use 35 percent of the proceeds from
\nthe bonds issue to repay its long-term debt, 20 percent to repay
\nshort-term debts, 10 percent to increase working capital and 35
\npercent to finance its property project -- the Sudirman Central
\nBusiness District (SCBD) -- which would be the largest superblock
\nin Asia.<\/p>\n
He said the superblock would cost about US$3.6 billion to
\nbuild and be completed in 2007. \"Now we have completed about 20
\npercent of it,\" he said.<\/p>\n
JIHD is 15.9 percent owned by Tommy Winata, 13.4 percent by
\nSugianto Kusuma, 10 percent by Anawin Holdings, 28.4 percent by
\nthe local investing public and 28.6 percent by foreign
\nshareholders.<\/p>\n
The company is the majority shareholder of Hotel Borobudur
\nIntercontinental -- a five-star hotel in Jakarta that is due to
\nbe reopened in August after renovation --, and PT Danayasa
\nArthatama, the developer of the 45-Ha SCDB.<\/p>\n
The company also has 21.4 percent of PT Satelindo, the
\noperator of the largest cellular network in Indonesia.<\/p>\n
The company last year saw its net profit rising 85.3 percent
\nto Rp 23.9 billion, from Rp 12.9 billion in 1995, profits were
\nmainly derived from Satelindo.<\/p>\n
He did not say what the income target was for this year. But
\nhe said the company's hotel and property business would see a
\nstrong growth during the next two years due to the reopening of
\nits Hotel Borobudur in August and the sale of its Kusuma Candra
\napartments and Conrad office towers. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jihd-to-float-rp-600b-in-bonds-1447893297",
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"sponsor": "Okusi Associates",
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