ASEAN KEY DESTINATIONS
Podomoro to raise Rp 750b from bonds issuance
Publicly-listed property developer Agung Podomoro Land (APL) says it is planning to raise Rp 750 billion (US$64.8 million) from bonds issuance slated for later this month.
The scheme is part of APL’s plan to raise Rp 2.5 trillion to support business expansion, with the first bond issuance — amounting to Rp 1.2 trillion — offered in June last year.
According the company’s published prospectus, the bonds, which will mature in five years, will be offered from May 23 through 28 and are scheduled to be listed on the Indonesia Stock Exchange (IDX) on June 4.
APL set the coupon rate for the bonds between 12 and 25 percent.
APL finance director Cesar de la Cruz told a press conference on Thursday that the bonds would be used to finance expansion, whether through project developments or acquisitions.
“The funds raised will be used as part of our capex [capital expenditure] this year, which will stand at Rp 5.5 trillion,” Cesar said, adding that the company had yet to decide when it would issue the remaining Rp 550 billion in the bonds series.
“We will use the funds to finance ongoing and future projects. We might also consider acquiring new land if there are any potential opportunities, but we have yet to disclose any plans,” he added.
APL is currently working on several projects — mostly hotels and shopping malls — including the superblock Podomoro City extension in West Jakarta; small office home office (SOHO) Pancoran in South Jakarta; Metro Park apartments and Harco Glodok electronic shopping center both in West Jakarta; and Kenari Mas mall in Central Jakarta.
It is also working on Grand Taruma township in Karawang; Vimala Hills Resort, Bandung International Convention Center and Bandung Parahyangan Residences, all in West Java; two resorts in Bali; Orchard Park Batam housing complex in the Riau Islands; and superblock Podomoro City Deli Medan in North Sumatra.
Cesar said that the company currently operated 10 hotels and was planning to open 10 more to help it raise its recurring income to secure more stable income amid the slowing property business.
He explained that the company hoped to increase its recurring income by 40 percent from about Rp 1 trillion last year to Rp 1.4 trillion this year by developing more malls and hotels.
APL, according to him, currently operates 1,500 hotel rooms and is expected to double that figure by 2016 to help the company reap Rp 2 trillion in recurring income by the year end.
APL saw its first quarter revenue and profit remain relatively stagnant from Rp 1.12 trillion last year to Rp 1.16 trillion and from Rp 272.4 billion to Rp 281.58 billion, respectively.
The company’s marketing sales in the first quarter rose by 6 percent year-on-year (y-o-y) to Rp 1.83 trillion. Harco Glodok contributed 32 percent to the total figure, followed by — among others — Orchard Park with 27.2 percent; and Podomoro City Deli Medan and Podomoro City extension with 12.7 percent and 8 percent, respectively.
Cesar said that APL targeted revenue increase of five to 10 percent this year from Rp 4.9 trillion generated last year. It aims to pocket Rp 6.5 trillion in marketing sales this year, slightly up from Rp 6.3 trillion last year.
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