Ciputra Development to float Rp 150b in bonds next month
Ciputra Development to float Rp 150b in bonds next month
JAKARTA (JP): Publicly listed PT Ciputra Development, a major
property company, will float five-year bonds worth Rp 150 billion
(US$65 million) for three days from July 8.
"We'll use the proceeds from the bond issuance to refinance
our short-term debt," Harun Hajadi, a director of Ciputra
Development, said yesterday after the bonds issuance was made
public.
He said that the company's short-term debt -- commercial
papers with maturity of less than one year -- amounts to Rp 150
billion.
Harun noted that his company has not yet decided on the
interest rate of the bonds. "We will announce it on June 24. The
rate will be fixed but the rate will be based on the prevailing
market rate if the latter is higher than the fixed one," he said.
According to him, the bonds issue date will be on July 17 and
they will be listed on the Surabaya Stock Exchange on July 23.
Harun pointed out that the bonds offer both put and/or call
options. The put option gives investors the right to sell the
bonds back to the issuer -- Ciputra Development -- three or four
years after the issue date. The call option makes the bonds
redeemable on demand.
"The issuance of bonds is very important for Ciputra
Development. In accordance with short and long-term strategies,
Ciputra Development will always search for competitive
alternative financing," he said.
The arranger and lead manager for the bonds are PT BT Prima
Securities Indonesia and PT Danareksa Sekuritas. PT Bank Dagang
Negara was appointed the trustee and paying agent.
Harun, who claimed that Ciputra Development is one of the
largest and most profitable property companies in the country,
said the bonds have received a BBB rating from the Indonesian
rating company PT Pefindo.
Ciputra Development saw its total revenue increase by 20
percent to Rp 513.9 billion last year, while its gross profit
grew by 18 percent to Rp 161.4 billion.
Harun said his company expects to see a profit increase of 23
percent this year.
Ciputra Development -- the holding company for Ciputra's
property development -- was established by Ciputra in 1981 and
was listed on the Jakarta and Surabaya Stock Exchanges on March
1994. Currently, its market capitalization is valued at US$6
billion. (13)