Jababeka issues US$150m notes to fund expansion

JAKARTA (JP): PT Kawasan Industri Jababeka, through its Dutch subsidiary Jababeka International BV, has issued a three-year floating rates notes worth US$150 million to support its industrial estate expansion.

The company said in a statement that the notes, launched in Singapore yesterday, were arranged by Nomura and Peregrine through their Hong Kong branches.

"The notes will mature in three years with an interest rate of 2 percent above the six-month LIBOR per annum," vice president Iwan Putra Brasali said.

Iwan said the funds would be used to finance the land clearance of the Cilegon industrial estate, in Serang, West Java.

"Part of the funds will be used to acquire 76.5 percent of PT Batavia City Realty and Batavia Perkasa," he said.

Jababeka is currently developing an integrated industrial estate in Cilegon, West Serang with a total investment of about US$600 million.

The new 1,300 hectare industrial estates will accommodate big industries such as petrochemical industries, machinery, electronic and marine industry.

PT Batavia Perkasa is developing a shopping and office complex in Jakarta.

The shopping complex will occupy 60,000 square meters of land, while the office complex will occupy 75 square meters.

The listed Kawasan Industri Jababeka has obtained a license to develop 4,270 hectares of land consisting of 1,570 hectares in Cikarang industrial estate, 1,400 hectares in new Cikarang Kota Hijau housing estate and 1,300 in Cilegon industrial estate in Serang, West Java.

The publicly listed industrial estate developer now operates an integrated industrial estate in Cikarang, West Java.

Jababeka had previously set up PT Gerbang Teknologi Cikarang, a joint venture between PT Kawasan Industri Jababeka and Singapore Investment Pte. Ltd., to develop a high-tech estate in the Cikarang estate.

According to an earlier report, a foreign securities company Merrill Lynch bought 70 million shares or 11.16 percent of Jababeka from its founding shareholder PT Mekar Sertajaya.

PT Mekar Sertajaya owns 42.93 percent or 134,640 million shares of Jababeka. Last year Merril Lynch also bought 62.8 million shares of Jababeka. (aly)