Indonesia's property sales growth is expected to accelerate in 2016 to 10-12 percent from 7-8 percent last year, the chairman of property industry group Realestat Indonesia (REI) said. (ID Photo/David Gita Roza)

Surya Internusa Mulls Local Bond Issuance As Possible Alternative to Singapore MTNs

BY :VANESHA MANUTURI

NOVEMBER 11, 2015

Jakarta. Surya Semesta Internusa, a listed property developer, is mulling plans to raise up to Rp 3 trillion ($220 million) from selling five-year bonds as lingering market uncertainties cast doubts over the company's planned medium term notes release in Singapore.

The property developer last week announced plans to raise up to S$300 million ($211 million) from medium term notes (MTNs) through its Singapore-affiliate SSIA International, after calling off a $200 million dollar-denominated bond issuance due to bearish market sentiments in August.

However,  Johannes Suriadjaja, president director at Surya Semesta Internusa, said that the company is now evaluating both a bond sale in Singapore as well as Indonesia as options to fund their Rp 3 trillion expansion plan ahead.

Surya Internus is eyeing a May issuance of rupiah-denominated bonds, targeting to raise up to Rp 700 billion, Johannes said.

"[The rupiah bonds] would shield us from foreign exchange gains or losses. Secondly, we can also offer longer maturities compared to the Singapore MTNs," Johannes told reporters at the sidelines of the Investor Summit and Capital Expo 2015 in Jakarta on Tuesday.

"We're just seeing which one comes first. These are the options right now. We're still waiting for market condition until the end of the year."

The company plans to use the funds as capital spending over the next two to five years with a focus on industrial estates, according to the president director.

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