BSD Cuts Bonds Issuance Target
Jakarta. Property developer Bumi Serpong Damai cuts its June bonds issuance target by more than a half, expecting it could issue the remaining debt notes at lower interest rate in the future.
The company, which is controlled by conglomerate Sinarmas Group, now plans to raise Rp 650 billion ($48.6 million) from the bonds issuance, from previous target Rp 1.5 trillion, Hermawan Wijaya, BSD's director said on Friday (10/06).
BSD plans to use 40 percent of the bonds proceed to acqure land, another 40 percent for financing house, office, commecial space, and infrastructure construction in BSD City in Banten. The remaining would fund the company's working capital.
"We have two years, so we can issue the rest anytime in the future," Hermawan said. He was referring to approval for the up to Rp 3 trillion bonds issuance from the Financial Services Authority, which would expire in 2018.
BDS has been offering five- and seven-year bonds at 9 percent and 9.25 percent interest respectively since Friday until Monday. The bonds would be listed at Indonesia Stock Exchange next Friday.
BCA Sekuritas, Mandiri Sekuritas, Indo Premier Securities, and Sinarmas Sekuritas act as the underwriter of the issuance.
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