Duta Pertiwi to issue straight bonds
Duta Pertiwi to issue straight bonds
JAKARTA (JP): A publicly-listed property company, PT Duta
Pertiwi, plans to issue straight bonds worth Rp 200 billion
(US$86 million) in spite of the negative outlook facing the
property sector in the debt market.
"The proceeds of the issue will be used to increase our
working capital to support several projects yet to be started,"
the company's finance director, Anisa Himawan, said yesterday.
The projects include a condominium and shopping mall and the
second phase of the Ambassador Kuningan super block, all in South
Jakarta.
The construction of the condominium and shopping mall alone
require an investment of US$60 million, she said.
Anisa said that the bonds will be offered either with a fixed
interest rate of 18 to 18.25 percent per annum for five years or
with a fixed rate of 18.75 percent for the first year and a
floating rate for the remaining four years.
"The floating rate will be based on average interest rates on
six-month deposits of six selected private banks, plus a fixed
premium of 2.25 percent per annum for the second and third years
and a minimum premium of 2.50 percent per annum for the fourth
and fifth years," she added.
An executive of PT Trimegah Securities, the leading
underwriter of the bond issue, said that April's issue will
comprise 550 units with a nominal value of Rp 10 million, 350
units of Rp 50 million, 270 units of Rp 100 million, 100 units
of Rp 500 million and 100 units of Rp 1 billion.
Anisa said the funds from the bond issue will not be used to
refinance the company's short term debts.
"As a property company, we need a longer tenure of debt. So, I
would say that bonds is an alternative source of financing which
will help to increase our current ratio from 100 percent to
approximately 200 percent."
On Oct. 31 last year, Duta Pertiwi's total debts reached Rp
800 billion, as compared to its total assets of Rp 1.3 trillion.
The company's commercial papers, which will expire soon,
reached Rp 194 billion and its total offshore loans US$82
million.
Anisa said the company expected a 10 percent increase in its
net profit this year from Rp 92 billion last year. (08)