Listed Indonesian property developer Pakuwon Jati will issue a $250 million global bond this year through its Singapore-listed subsidiary Pakuwon Prima, to refinance maturing debt. (GA Photo/Mohammad Defrizal)

Pakuwon Jati to Issue $250m Global Bond to Repay Debt

BY :SARAH YUNIARNI

FEBRUARY 17, 2017

Jakarta. Listed Indonesian property developer Pakuwon Jati will issue a $250 million global bond this year through its Singapore-listed subsidiary Pakuwon Prima, to refinance maturing debt.

Pakuwon is offering bonds that will mature in 2024 with an annual coupon rate of 5 percent, the company said in a prospectus released on Friday (17/02).

The proceeds from the bond sale will be used to redeem the company's outstanding 2014 bond, which will mature on July 2, 2019.

Pakuwon has appointed financial services group UBS as global coordinator and Morgan Stanley as the book-runner for the dollar-denominated bond sale.

The company raised $200 million from a global bond sale in 2014, which has an annual coupon of 7.12 percent, to repay some of its maturing debt, fund acquisitions and for working capital.

Pakuwon Jati booked Rp 1.31 trillion ($98 million) in net income between January to September last year, up 39 percent from the same period a year earlier, as the company managed to book gains from the foreign exchange rate.

Pakuwon Jati owns blocks of land in Jakarta and Surabaya, East Java. Its projects in Jakarta include integrated mixed-use development Gandaria City in South Jakarta. Pakuwon also operates Kota Kasablanka, a mixed-use development in Tebet, South Jakarta.

In Surabaya, the company operates superblock Tunjungan City, which comprises the Tunjungan Plaza, Mandiri Office Tower, a five-star hotel and condominiums.

The company's shares, which trade under the PWON stock ticker, closed 2.59 percent lower at Rp 565 on Friday, compared with the benchmark index that fell 0.5 percent.

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