IF OVERSUBSCRIBED, PP PROPERTI WILL INCREASE TARGET BOND PROCEEDS
PT PP Property Tbk (PPRO), a listed property subsidiary of PT PP (Persero) Tbk (PTPP), plans to increase the bond proceeds target by the end of the first half of 2016, from Rp 600 billion to Rp 800 billion. According to company directors, the plan is to raise the target if the current bond offering is oversubscribed.
So far, PT Indonesia Rating Agency securities (PEFINDO) just approved a property value of PP bonds worth Rp 600 billion, with a rating of A-. “We will communicate with PEFINDO on raising the target acquisition,” said Indaryanto, Finance Director PP Property.
He added that 70% of the bond proceeds will be used for investment in the development of a subsidiary in the property sector, 15% for working capital and the remaining 15% to refinance the company’s debt to PT Aneka Building Multi Jaya.
“The bonds to be issued is comprised of two tenors, the A tenor is three years with a coupon of 9% to 9.5%, while the B tenor is five years with a coupon of 9.75% to 10.25%,” said Indaryanto.
He said that when setting the rate for the first series with three-year tenor, the Company analyzed the prospect of debt securities of issuers that have the same rating. “It regards the coupon bond issuers that have ratings equal to us such as PT Waskita Karya (Persero) Tbk (WSKT),” Indaryanto said.(*)
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