JAKARTA (TheInsiderStories) – The real estate firm, PT Ciputra Development Tbk (IDX: CTRA) issued another S$25 million (US$18.79 million) of global bond, bringing the total issuances S$ 125 million, the company announced today. Las January, the developer has released S$100 million and has been listed at Singapore Stock Exchange on Feb. 2.
As reported, the proceeds use to buyback the existing notes, which will mature in 2026. According to the director, Tulus Santoso, the issuer has set a price for the second tranche with Series 003 worth of S$25 million at 6 percent per year. DBS Bank Ltd., became lead manager and sole book-runner for the issuance of the second tranche.
These bonds are part of Ciputra‘ multi currency medium term notes program, which has a ceiling of up to S$400 million that has been running since 2015. The company plans to refinances around S$150 million of noted that mature in this year with an interest rate of 4.85 percent.
The company has started the process by submitting amendments to the terms and conditions of the 2021 notes for tender offer purposes. The tender offer process will take place from Jan. 18 to Feb. 8, 2021. Then, the bondholders meeting on Feb. 10.
Based on the financial reports, Ciputra has a total loan of Rp9.7 trillion ($692.86 million) as of September 2020, mostly in Rupiah-denominated, Singapore Dollar 20 percent, and Greanback around 1 percent.
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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