PP Properti to issue Rp 1.2 trillion bond to restructure debt, fund expansion

22-Jan-2020 Intellasia | JakartaPost | 6:02 AM Print This Post

Publicly listed property firm PT PP Properti is set to issue Rp 1.2 trillion (US$87.8 million) worth of bonds to restructure its debt and to fund its business expansion plan.

PP Properti finance director Indaryanto said on Monday that the subsidiary of state-owned construction company PT PP would offer coupons with high interest rates to lure investors as no-standby buyers in the offering.

“Our bond rating gets a BBB+ rating from Fitch Rating, where the market is competitive. That’s why we’re offering an attractive interest rate [...] equivalent to bank loan [interest rates] of 9 percent,” he told reporters after a public event discussing the plan.

The Series A 3-year bonds will have a yield of between 9.4 percent and 9.9 percent while the 5-year Series B bonds will offer a 9.75 percent to 10.25 percent of yield. The debt issuance makes up part of the company’s shelf registration bonds, worth Rp 2.4 trillion in total.

The company will use about 41 percent of the proceeds for debt refinancing, about 33 percent for business development in Java and Lombok and 25 percent for the company’s working capital.

The book-building process will run from January 20 to February 3 with CIMB Niaga Sekuritas, Ciptadana, Indopremier, Mandiri Sekuritas, RHB Sekuritas and Trimegah Sekuritas acting as underwriters.

PP Properti’s stocks, traded on the Indonesia Stock Exchange (IDX) under the ticker symbol PPRO, had stagnated as of Tuesday morning at Rp 56 apiece. The stocks have lost almost 61 percent of their value over the last 12 months, according to Bloomberg data.

https://www.thejakartapost.com/news/2020/01/21/pp-properti-to-issue-rp-1-2 trillion-bond-to-restructure-debt-fund-expansion.html


Category: Indonesia

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