JAKARTA (TheInsiderStories) - PT Surya Semesta Internusa Tbk (IDX: SSIA), a public listed property developer, has decided to issue bonds in Singapore dollar denominated valued at S$100 million in stages after cancelling its plans to issue U.S dominated bond due to bearish market.
The company, which operates a number of five-star hotels in the country and industrial estate, had earlier intended to offer up to $200 million of dollar-denominated bonds (global bonds) that will be registered on the Singapore Exchange through its industrial subsidiary, PT Suryacipta Swadaya.
The company was planning to use funds from the bond issuance to improve its liquidity as well as acquire and develop more land, to expand its industrial estate in Karawang, West Java. In the meantime, Surya Internusa is still evaluating and assessing other financing alternatives, such as bank loans or bond issuance in another currency.
Investor Relations of Surya Semesta Erlin Budiman said the Singapore dollar bonds is currently more profitable than the U.S dollar because the rating is more fafourable and the coupon rate could be lower. On the other hand, the Singapore dollar bonds is expected to be easily to absorbed because Singapore investors are more familiar with Indonesia.
He added, the company is targeting to acquire 500 hectares of land at a total cost of Rp1.7 trillion. The funds will include land acquisition, construction of facilities and infrastructure in the company’s industrial area Suryacipta Karawang, development of SSI Tower building and hotel business.
Surya Semesta Internusa has cleared 260 hectares of land in Subang, West Java. Since last year, the company has won permission to develop 2,000 hectares of land into an industrial area.
The company has also constructed three three-star hotel, named Batiqa in Jababeka, Cirebon and Palembang. Previously, SSIA plans to build four Batiqa hotels this year with an investment of Rp 350 billion. But the plan to build Batiqa Hotel in Pekanbaru has been postponed. (*)
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