Muliasentra to issue five-year bonds

JAKARTA (JP): PT Muliasentra Gunaswakarya, which owns 59.3 percent of publicly listed property firm Mulia Land property, will issue five-year bonds worth between Rp 150 billion (US$63.02 million) and Rp 250 billion later this month.

"The bonds, which will be floated on the Surabaya Stock Exchange will carry a coupon of between 7 and 10 percent," Muliasentra director Tjahja Sathiadi said yesterday.

Tjahja said the funds raised would finance the development of Taman Anggrek Mal II near Taman Anggrek I shopping center-come- condominium in West Jakarta.

He said developing Taman Anggrek II would cost about US$190 million (Rp 452.2 billion) of which Rp 250 billion would be derived from the bonds and the remainder from bank loans.

PT Jardine Fleming Nusantara will underwrite the issue.

"The 95,000-square-meter Taman Anggrek Mall I has sold about 90 percent of its space to tenants," Sathiadi said.

He said a state bank, which he refused to name, had agreed to arrange a loan syndication with several private domestic banks.

Tjahja said the funds raised in the issue would be lent to PT Muliagriya Indah to develop and manage Taman Anggrek Mall II.

Mulia Land would have an option to buy PT Muliagriya Indah based on the project's book value, he said.

Tjahja said Mulia Land, which had Rp 2.1 trillion in assets as of September 1996, expected to earn Rp 142 billion net profit in 1996, up from Rp 93.84 billion in 1995.

He said the firm projected net profit of Rp 165 billion in 1997 and Rp 200 billion in 1998.

PT Mulia Land is a property developer which owns and manages office buildings in the golden triangle business area including Plaza 89, Mulia Center, Mulia Tower, Wisma GKBI.

PT Mulia Land is also owned by PT Muliamustika Tataindah (28 percent) and the remainder by the investing public. (09)