JAKARTA (TheInsiderStories) – The property business holding, PT Ciputra Development Tbk (IDX: CTRA), plans to conduct a tender offer of its global bonds up to S$150 million (US$112.78 million). The issuer plans to replace the existing notes with mature in September 2021 with new bonds and extend the maturity.
The developer offered coupon rate 4.85 percent for the new bonds. To replace the global bond, the management to issues medium term notes up to S$400 million. The tender offer of these bonds starting today until Feb. 8, 2021. The company also set the deadline for the offering to get approval from the bondholders before Jan. 27.
DBS Bank has been appointed as dealer manager for the tender offer program and Tricor Singapore Pte. Ltd., as an agent. According to the director, Tulus Santoso, Ciputra had a total loan of Rp9.7 trillion, 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, the property builder 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, Ciputra 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. According to management, the transaction value of this program is estimated at Rp462.5 billion, which will be used as working capital.
The shareholders who did not participate in the additional capital would experience ownership dilution of a maximum of 9.99 percent. Santoso stated, the capital increase part of an anticipation the increasing need for the funds over the next two years. This plan will first be sought for shareholder approval on July 30, 2020.
Last March, the developer’ shareholders increased their ownership 5.81 percent of Ciputra 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.
The company 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 line with business development, in 1994 the developer 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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