Jakarta. PP Properti, the property developer unit of state controlled construction firm PP, seeks to raise Rp 600 billion ($44 million) from a bond issuance on June 24, to support the company's investment projects in Java, Kalimantan and Lombok.
The company will use 70 percent of the proceeds to acquire shares in existing projects and to acquire land for their projects which include developing apartments in Java and hotels and shopping centers in Kalimantan.
PP also plans to use 15 percent of the proceeds to beef up its working capital, while the remainder would be used to pay some of the company's Rp 468.6 billion outstanding debt to Aneka Jaya Mulia Utama, a Surabaya-based property developer.
The company started bookbuilding on Wednesday and will continue to do so through to June 10 to gauge investor interest in the debt notes offered as 3-year and 5-year bonds. PP Properti has yet to determine the coupon for the bonds.
The estimated offering period is scheduled on June 22 and 23. PP Properti plans to list the bonds on the Indonesia Stock Exchange (IDX) on June 29.
Bina Artha Parama, Danareksa Sekuritas, Mandiri Sekuritas, and Trimegah Securities are acting as the joint underwriters for the issuance.