PTPP Bond Restructuring Rejected, Tenor Extension Denied
The state-owned property issuer PT Pembangunan Perumaan (Persero) Tbk (PTPP) has announced the results of the General Meeting of Bondholders (RUPO) and the General Meeting of Sukuk Holders (RUPSu) regarding the proposed restructuring of three of the company’s debt instruments.
The first RUPO addressed the PTPP Sustainable Bond III Phase I Year 2021 Series B. The meeting was attended by bondholders representing a value of Rp534 billion, or 82.79% of the total outstanding principal of Rp645 billion.
Additionally, PTPP held a RUPSu for the PTPP Sustainable Sukuk Mudharabah I Phase I Year 2021 Series B. In this meeting, sukuk holders present represented a value of Rp97 billion, or 97% of the total outstanding principal of Rp100 billion.
The company also conducted an RUPO for the PTPP Sustainable Bond IV Phase I Year 2024. Bondholders present represented a value of Rp410 billion, or 96.56% of the total outstanding principal of Rp424.62 billion.
According to the meeting results, debt holders did not approve the restructuring proposal to extend the tenor to 15 years until 2041 with an interest rate of 3.5%. This scheme would have regulated interest payments at 1%, with the remaining 2.5% deferred until 2041, under the provision that deferred interest would become the right of the bondholders recorded at maturity if the bonds are transferred before 2041.
Debt holders also rejected the proposal to reduce the interest rate to 3.5% until the 2027 maturity, using a payment scheme of 1% interest with 2.5% deferred. The deferred interest in this scheme was planned to be paid upon maturity in 2027.
Furthermore, debt holders rejected the proposal to postpone interest payments until the 2027 maturity without incurring penalties for late payment or default. Consequently, the restructuring proposal regarding the postponement of interest payments did not receive approval during the meeting.
“Did not approve granting power of attorney to the Trustee to sign amendments to the Trustee Agreement and related documents to follow up on the above decisions,” as quoted from the Indonesia Stock Exchange (BEI) information disclosure on Thursday (3/11/2026).
Despite this, it is noted that PTPP is included in the planned consolidation and restructuring of state-owned construction companies (BUMN Karya) currently being managed by the Danantara Investment Management Agency.
This process will begin with a comprehensive financial assessment of PT PP. Adjustments and corrections to financial statements are required to ensure the company’s position can be mapped transparently before entering the merger stage.
Once the merger process is complete, restructuring will continue through corporate reorganization. This step is aimed at ensuring PT PP can have a more focused business structure and optimise potential in core businesses with growth prospects.
The merger is also expected to increase the company’s scale by combining resources, capacity, and competencies. With a stronger scale, the company is expected to improve operational efficiency and effectiveness while strengthening the competitiveness of BUMN Karya.