JAKARTA (TheInsiderStories) – PT PP Properti Tbk (IDX: PPRO), unit of Indonesia’ investment holding, PT PP Tbk (IDX:PTPP) plans to issue local denominated bonds Rp800 billion (US$56.37 million), said the company today (02/04). The three year’ bond offered coupon rate rate 11.15 percent per year.
On June 2018, the developer has issued the first phase of Rp2 trillion bonds issuance targets, worth of Rp665.5 billion with coupon rate 9 percent for three years tenure and 9.25 percent for five years period.
The company said, for the second phase, the offering period will begin from Feb. 15 to 19, the allotment Feb. and to be listing at the Indonesia Stock Exchange (IDX) on Feb. 25. The first interest payment of the bonds set on May 22, 2019.
The company has obtained a debt rating from Fitch Ratings Indonesia, BBB +. PP Property helped by PT CGS CIMB Securities Indonesia, PT Danareksa Securities, PT Indo Premier Securities, PT Mirae Asset Securities Indonesia, PT Samuel Sekuritas Indonesia, and PT Trimegah Securities Indonesia Tbk (IDX: TRIM) for the bond issuance.
Realty Director of PPRO Galih Saksono said this year, the company aimed to develop five new projects in several cities such as Cibubur in East Jakarta and Yogyakarta.
“The implementation is expected in the second half of 2019 and we are optimistic that the property market will continue to be good next year despite entering a political year,” he stated last year.
In third quarter (3Q) of 2018, PP Properti posted a net profit Rp305.8 billion, or rose 11.2 percent compared to the same period the previous year Rp274.9 billion. However, the revenues only rose 1.7 percent from Rp 1.79 trillion in 3Q 2017 to Rp 1.82 trillion in 3Q 2018.
The company’ net profit was supported by the presence of other revenues booked by PTPP’ subsidiary of Rp35.6 billion. This year, the developer targeting the revenues to grow around 25 percent compared to realization in 2018 while net income to grow around 20 percent.
Total assets of PPRO as of the end of September 2018 worth of Rp15.52 trillion, or up from Rp12.55 trillion at 3Q 2017. Where the total equity is Rp. 5.46 trillion or an increase of 9.38 percent from same period in 2017.
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