Plaza Indonesia Realty Tbk (PLIN) will issue bonds worth USD 300 million or equivalent to IDR 4.03 trillion, which is listed on the Singapore Exchange Securities Trading Ltd (SGX-ST). Proceeds will be used for debt refinancing, capital expenditures, developing projects on its subsidiaries, and working capital requirements of
Lucy Suyanto, Director of PLIN, said the bonds will be issued by a subsidiary established in Singapore, the Plaza Indonesia Property Pte Ltd. This is a material transaction since the value reaches 176 percent of PLIN’s equity value amounting to IDR 2.28 trillion. This five-year loan is secured by the company and its subsidiaries.
Based on the financial statements as of March 31, 2017, the company has debt to equity ratio (DER) of 2.08 times, above the average DER of property and real estate subsectors by 0.71 times. The company is planning to sell or transfer the treasury stock of 512 million shares worth IDR 1.64 trillion to lower the DER.
The company will hold an Extraordinary General Meeting of Shareholders (EGMS) on August 15, 2017 to obtain approval. PLIN is targeting this transaction to be carried out by September 2017. (*)