Ciputra Surya to issue Rp 300b six-year bonds

JAKARTA (JP): PT Ciputra Surya, a subsidiary of publicly listed property developer PT Ciputra Development, will issue six year bonds worth Rp 300 billion (US$125 million) to refinance its loans and support expansion.

Cynthia Indradewi, BNI Securities' director -- the lead underwriter for the issuance -- said Ciputra Surya's bonds would be sold to domestic and overseas investors.

"Our targets are mutual funds, pension funds, insurance firms and banks," she said.

The bonds will carry a fixed interest rate of between 15.5 percent and 15.625 percent a year.

Cynthia said PT Harita Kencana Securities and Peregrine Securities would take part in underwriting the bonds, which were given a triple B grade by the state rating agency PT Pemeringkat Efek Indonesia.

Harun Hajadi, the company's president, said about 65 percent of the bond offering's proceeds would refinance existing loans which were about Rp 190 billion as of April.

He said the other 35 percent would finance the development of Theme Park, a Ciputra Mall and a golf course in Surabaya.

He said the $80 million project should be completed in December 1998.

Harun said Ciputra Surya also planned a housing project, CitraHarmoni, in Sidoardjo, Surabaya. The required investment is Rp 2 trillion (US$833.33 million) over 10 years.

He said the CitraHarmoni project on between 800 and 1,000 hectares, would target Sidoardjo's industrial workers.

Sidoardjo, about two kilometers from Surabaya, is one of East Java's important industrial towns.

Harun said CitraHarmoni would be developed in 10 stages. The first stage is to start in December 1997.

"First stage investment is expected to be Rp 200 billion," he said. Fifty percent from its equity and the rest from bank loans, he said.

During the first stage, the company will construct about 1,200 medium-size houses. They will be sold at between Rp 12 million and Rp 90 million.

He said Ciputra Surya, the Kota Mandiri CitraRaya housing developer -- also in Surabaya --, has several property projects outside East Java such as the Ciputra Mall and Hotel in Semarang, Central Java, CitraRaya in Tangerang, West Java, CitraIndah in Cibubur, East Jakarta and Ciputra City in Jalan Satrio in South Jakarta's golden triangle.

He said Ciputra Surya expected a 27 percent rise in net profit this year to Rp 80 billion from Rp 62.7 billion in 1996.

He said Ciputra Development expected to post a net profit of Rp 156 billion in 1997, up from Rp 131 billion in 1996 while sales were expected to reach Rp 650 billion this year, up from Rp 535 billion in 1996. (09)