Ciputra's company raises $100m from floating rate notes

NUSA DUA, Bali (JP): The Amsterdam-based Ciputra Development International B.V., a subsidiary of the publicly-listed PT Ciputra Development, yesterday issued floating rate notes worth US$100 million with Keppel Bank of Singapore Ltd. as lead coordinator.

Ciputra, founder and chairman of the Ciputra Group, said after signing the notes in the Sheraton Lagoon Hotel here that Ciputra Development guaranteed the issuance of the notes.

Harun Hajadi, a director at PT Ciputra Development, said 55 percent of the funds would be used for the company's working capital and the rest to repay its short-term debts.

He added that the notes, which carry an annual interest rate of 2.3 percent above the London Inter-Bank Offered Rate, will mature by the year 2000.

"Compared with local banking interest rates, our notes' are still competitive. Moreover, with raising bank loans for property financing getting more difficult right now, the issuance of such notes could be a breakthrough in the property sector," PT Ciputra Development's finance director, Junita Ciputra, said.

Benedict Kwek Gim Song of Keppel Bank, a participant in the notes' arrangement, said the notes, each with a nominal value of $250,000, would be listed on the Stock Exchange of Singapore and the Luxembourg Stock Exchange.

In addition to Keppel Bank, the participating banks included Baring Brothers Ltd., Bangkok Bank Public Company Ltd., Oversea- Chinese Banking Co. Ltd., the state-run Bank Ekspor Impor Indonesia's Singapore branch, the state-run Bank Negara Indonesia's Singapore branch, Societe Generale's Singapore branch, the Hongkong & Sanghai Banking Co. Ltd., Hyundai International Merchant Bank, Malayan Banking Berhad, Tat Lee Bank Ltd. and International Factors Leasing Pte. Ltd.

PT Ciputra Development, which recorded total assets of Rp 1.59 trillion ($715 million) as of last December, posted a 3,779 percent increase in profits to Rp 103.97 billion last year from merely Rp 2.68 billion in 1993.

The company's revenues increased by 364 percent to Rp 428.4 billion last year, of which 86 percent was generated from the sales of 2,542 houses and the rest was from its hotel service.

Harun said his company projected to sell up to 3,000 houses this year to earn some Rp 480 billion, adding that it targeted to raise Rp 570 billion in revenues this year.

PT Ciputra Development, listed in both Surabaya and Jakarta Stock Exchanges last year, controls six major projects, including the Mall and Citraland Hotel, the CitraSatrio estate and the 455- hectare Perumahan Citra, all in Jakarta, the 1,000-hectare CitraRaya Tangerang-Kota Nuansa Seni in Tangerang of West Java, Mall and Citraland Hotel in Semarang of Central Java and the 1,000-hectare CitraRaya Surabaya in East Java. (Riyadi)