PT Bumi Serpong Damai Tbk (IDX: BSDE) plans to increase capital around Rp1.5 trillion (US$107.14 million) through a private placement, said the company on Thursday (06/11) - Photo by the Company

Jakarta (TheInsiderStories)PT Bumi Serpong Damai Tbk (IDX: BSDE) through its armed Global Prime Capital Pte. Ltd., launch tender offer for some or all of US$300 million senior notes which issued in April 2018 and will mature in 2021, said the management on Wednesday (o8/28).

Quoting its unit’ disclosure at Singapore Stock Exchange on Tuesday, the company has appointed joint lead managers and book-runners namely Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Ltd., UBS AG Singapore branch, and Mandiri Securities Pte. Ltd.

The property developer signed the agreement with the four parties on August 27. The tender offer will be lasting from August 27 until Sept. 2, 2019. Previously, the senior notes have a 7.25 percent interest.

BSDE has planned to issue new senior notes with adequate amount for the refinancing plans and has get Ba3 rating from Moody’s Investor Service and from Fitch Ratings BB-. In the connection with this plan, the management is planned to hold a series of meetings with its creditors in Indonesia, Singapore, Hong Kong and London.

No further details on the value of the issuances, but the unit of Sinar Mas Group stated, the amount will not be more than 20 percent of the company’ equity. The proposed notes are guaranteed by Bumi Serpong Damai and some of its subsidiaries, and rank pari passu with the 2021 notes and 2023 notes.

At 30 June 2019, around 60 percent of the property developer’ total debt was unsecured. In addition, the majority of BSDE’ earnings and borrowings are held at the holding company, which is a guarantor to the notes.

According to Moody’s, the Ba3 rating reflects its established position as one of the largest property developers in Indonesia, with diversification across multiple projects and property segments. BSDE’ scale and diversification also provide the company with the flexibility to alter its product offerings and cater to changing market demand.

Bumi Serpong Damai is also exposed to the volatile property sector and the evolving regulatory environment in Indonesia. The stable rating outlook reflects Moody’s expectation that the company will achieve at least Rp5 trillion ($352.11) of marketing sales each year and maintain financial discipline as it pursues growth.

Established in 1984, BSDE is one of the largest developer listed on the Indonesia Stock Exchange by market capitalization. The company and its subsidiaries are engaged in the development, management and operation of residential townships, condominium towers, office buildings, retail malls and hotel properties.

The company is sponsored by Sinarmas Land Limited, which held an approximate 60 percent stake in the company at June 30, 2019.

US$1: Rp14,200

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