ASEAN KEY DESTINATIONS
Panorama to issue bonds of Rp 400b
Publicly listed tour and travel company PT Panorama Sentrawisata is hoping to reap Rp 400 billion (US$30.9 million) from the bond market this year to expand its hotel business, refinance its debt and fund part of its capital expenditure (capex).
The issuance, set for April 30, is the firm’s second as part of its Rp 500 billion sustaining bonds.
The company, popularly known as Panorama Group, previously issued bonds worth Rp 100 billion in 2013.
Panorama is scheduled to list the second bond issuance on the Indonesia Stock Exchange (IDX) on May 7. The firm has appointed PT Mandiri Sekuritas and PT OCBC Sekuritas Indonesia as underwriters for the sales.
Ratings agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned an “A-” rating for the bonds.
The bonds will mature in three years with a coupon rate of 11 percent to be paid quarterly.
“From the Rp 400 billion bonds, Rp 200 billion will be guaranteed with full commitment and the remaining Rp 200 billion will be guaranteed at best effort,” Mandiri Sekuritas managing director Iman Rachman said on Tuesday during a press conference.
For best-effort bonds, the issuer has no obligation to issue the specified amount of the bonds if it fails to sell part or all of the specified amount of bonds.
Panorama president director Budi Tirtawisata said that his firm would use the money earned from the bond issuance for hotel business expansion, debt refinancing and capex.
From the targeted Rp 400 billion from the bonds, Rp 160 billion would be used to develop Panorama’s hotel business in Java and Bali, Rp 40 billion to refinance its debt to Bank Panin and the remaining Rp 200 billion to fund part of its Rp 400 billion capex this year, he said.
“We are now at the final stage of acquiring an upper-middle-scale hotel in Yogayakarta,” Budi said, refusing to elaborate on the acquisition process.
Panorama, through its subsidiary PHM Hospitality, has previously stated that it will manage four more hotels this year, namely The BnB in Cikarang, The 101 in Bogor, The 101 in Darmawangsa and The 101 in Belitung.
The company plans to develop and manage 20 hotels over the next five years, according to the firm’s internal data.
Budi added that his firm would also slash its interest-bearing debts by using Rp 40 billion in targeted funds from the bonds to pay its loan to Bank Panin.
Panorama’s total loan to Bank Panin stands at Rp 47.7 billion with an annual interest rate of 12 percent, according to the firm’s annual report.
As of last year, the firm’s total liabilities hit Rp 217.4 billion and its assets stood at Rp 254.7 billion.
This year alone, Panorama will allocate Rp 400 billion for its capex, with half coming from the bonds and the other half coming from its internal cash.
The total capex would be used to strengthen and expand all of Panorama’s business lines as well as add more facilities, Budi said.
Panorama is currently involved in three business sectors, namely tourism, transportation and hospitality.
The firm aims to see 15 to 20 percent growth this year, driven by a growing national travel market.
Panorama registered a 30 percent increase in gross revenues to Rp 3.45 trillion last year from Rp 2.64 trillion in 2013.
The company’s shares, which are traded on the bourse under the code PANR, shot up by 3.96 percent to Rp 525 apiece at Tuesday’s close from Rp 505 per piece in the previous closing. - See more at: http://www.thejakartapost.com/news/2015/04/22/panorama-issue-bonds-rp-400b.html#sthash.lGoNvhsr.dpuf
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