Publicly listed firm, PT PP Tbk (IDX: PTPP), provided loan injection to its subsidiary, PT PP Properti Tbk (IDX: PPRO) with total amount of Rp1.6 trillion (US$114.29 million)- Photo by the Company

JAKARTA (TheInsiderStories) – Publicly listed firm, PT PP Tbk (IDX: PTPP), provided loan injection to its subsidiary, PT PP Properti Tbk (IDX: PPRO) with total amount of Rp1.6 trillion (US$114.29 million), the management announced today (02/25). The debt have an interest rate of 9.5 percent with a term of 36 months.

This loan will be used by the unit to refinances its debt to their lenders such as domestic letter of credit, bank, interest payable, and maturing medium term notes. This transaction has been agreed by both companies on Jan. 20, 2021.

The transaction represents 35.25 percent of PP Properti’ equity based as of Sept. 30, 2020. Last year, the parent has injected Rp495 billion to the developer with interest rate 9.5 percent and tenure three years.

Currently, the builder managed several projects such as two steam power plants in East Nusa Tenggara and North Sulawesi with total costs Rp8 trillion and will be ready to operates in 2022. The capacity of each steam power plant is 2×50 megawatts (MW).

PTPP also become a contractor for ferro-nickel smelter construction located in Kolaka, Southeast Sulawesi with a total investment of Rp14.5 trillion. The contractor has signed a contract to build a smelter with PT Ceria Nugraha Indotama as an investor in April 2019.

Abdul Haris Tatang, a director at the company, stated that  the company will be cooperate with Chinese’ ENFI consortium to construct the smelter project. The management said that the project to build the fero nickel smelter will require an investment of Rp4 trillion in the first phase.

The plant has a total capacity of 4×72 MVA and targeting to operate in 2021. The production is projected to reach 229,000 tons of ferro nickel annually at a rate of 22 percent – 24 percent. The company also planned to sell part of its ownership in three toll road concessions, namely Pandaan – Malang toll road in East Java (35 percent), Kualanamu – Tebing Tinggi toll road (15 percent) and Kuala Tanjung Port (25 percent) in North Sumatera.

PTPP expects to raise around Rp500 billion from the equity sales. In addition, the company also eyes construction projects in the Philippines and port development project in Malaysia worth of Rp2 trillion, after getting the project in Vietnam with worth of Rp500 billion.

PP Properti  is a company resulting from the separation of the company’ property division which has been formed since 1991 and is domiciled in Jakarta. PTPP holds 64.96 percent of the unit’ shares, while the rest is held by YKK Pembangunan Perumahan 0.07 percent, and public 34.97 percent.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com