JIHD to float Rp 600b in bonds

JAKARTA (JP): Publicly listed PT Jakarta International Hotels and Development (JIHD) will float five-year bonds worth Rp 600 billion (US$250 million) next month.

JIHD's director of finance, Budiman Effendi, said here yesterday that the bonds would strengthen the company's financial structure and help finance its property projects.

The bonds, the first issued by the company, will have a fixed coupon rate of between 15.85 percent and 16.25 percent. The interest would be paid twice a year, he said.

He said Indonesian rating agency Pefindo had given the company's bonds issue a BBB-rating.

He said PT Danareksa Sekuritas and PT Trimegah Securindolestari would be the lead underwriters of the bonds, which would be offered from July 7, and be listed on the Surabaya Stock Exchange on July 22.

"We'll convert the proceeds from the bonds into U.S. dollars," Budiman said at the company's public expose of the bonds.

He said his company would use 35 percent of the proceeds from the bonds issue to repay its long-term debt, 20 percent to repay short-term debts, 10 percent to increase working capital and 35 percent to finance its property project -- the Sudirman Central Business District (SCBD) -- which would be the largest superblock in Asia.

He said the superblock would cost about US$3.6 billion to build and be completed in 2007. "Now we have completed about 20 percent of it," he said.

JIHD is 15.9 percent owned by Tommy Winata, 13.4 percent by Sugianto Kusuma, 10 percent by Anawin Holdings, 28.4 percent by the local investing public and 28.6 percent by foreign shareholders.

The company is the majority shareholder of Hotel Borobudur Intercontinental -- a five-star hotel in Jakarta that is due to be reopened in August after renovation --, and PT Danayasa Arthatama, the developer of the 45-Ha SCDB.

The company also has 21.4 percent of PT Satelindo, the operator of the largest cellular network in Indonesia.

The company last year saw its net profit rising 85.3 percent to Rp 23.9 billion, from Rp 12.9 billion in 1995, profits were mainly derived from Satelindo.

He did not say what the income target was for this year. But he said the company's hotel and property business would see a strong growth during the next two years due to the reopening of its Hotel Borobudur in August and the sale of its Kusuma Candra apartments and Conrad office towers. (bnt)