JAKARTA (TheInsiderStories) – The real estate firm, PT Ciputra Development Tbk (IDX: CTRA) offered a global Medium Term Notes (MTN) with total amount S$100 million (US$75.19 million) with a coupon 6 percent per year. The bond will be listed on Feb. 2 and will mature on Feb. 2, 2026.
The company has appointed DBS Bank Ltd., and Mandiri Securities Pte. Ltd., as the joint book-runner for the issuance. Fitch Ratings has assigned a B+ with a stable outlook for the MTN.
According to the director, Tulus Santoso, most of the funds are used for the initial payment of their obligations to bondholders. Ciputra has issued MTN S$150 million with an interest rate of 4.85 percent on Sept. 20, 2017 that will mature on Sept. 23, 2021.
He revealed that the developer had a total loan of Rp9.7 trillion, which is in Rupiah 79 percent, Singapore Dollar 20 percent, and the rest of it in US Dollar. Of the total, 27 percent or Rp2.5 trillion will mature in 2021, 19 percent in 2022, and others until 2028.
Throughout 2020, Ciputra was able to book pre-sales or marketing sales of Rp5 trillion ($357.14 million). This value exceeded the last year’ revised target of Rp4.5 trillion, from the original target of Rp6.7 trillion. The company’ marketing sales are dominated by first home buyers.
In the same year, the issuer offered as many as 1.85 billion new shares or 10 percent of the total paid up and fully shares with a private placement scheme. The firm had announced it was looking for a strategic investor to develop several property projects in Indonesia. The transaction value of this program is estimated at Rp462.5 billion and will be used as working capital.
The shareholders who did not participate in the additional capital would experience dilution a maximum of 9.99 percent. Santoso stated, the capital increase part of an anticipation the increasing need of the funds by Ciputra over the next two years.
Last March, the developer’ shareholders increased their ownership 5.81 percent of the company shares by buying 1.07 billion shares or Rp789.48 billion. With the purchase of this stock, its major shareholder, PT Sang Pelopor, now holds 52.77 percent ownership from previously around 46.69 percent.
Ciputra was established on Oct. 22, 1981, when the founding father established a company named PT Citra Habitat Indonesia. In 1990 he changed the name of the company to PT Ciputra Development. In 1994 the property firm made an initial public offering on the Indonesia Stock Exchange. In 1999, its subsidiary, PT Ciputra Surya Tbk conducted an IPO and then PT Ciputra Property in 2007. In 2016, Ciputra Surya rejoined Ciputra Development.
To date, the company has developed around 76 projects such as housing, apartments, shopping centers, hotels, golf courses, hospitals and offices in more than 33 major cities throughout Indonesia. The builder has also developed residential projects that target lower-class consumers in several locations around the archipelago.
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