JAKARTA. The Shelf Registration Bonds phase III of PP Properti has oversubscribed by up to 4.58 times. The value of demand reaches Rp 2.45 trillion, while the amount offered is Rp 534.5 billion.
President Director of PT PP Properti Tbk (PPRO) Taufik Hidayat said this is proof that investors have a high appreciation for PPRO. "The success of the issuance of these bonds cannot be separated from the selection of the right timings," he said in a written statement on Wednesday (3/7).
According to him, the right momentum coincides with the improvement in Indonesia's debt rating, government incentives, and the large number of matured bonds that are due, which increase demand. In addition, according to him, PPRO's financial position also continued to grow and the bond received BBB + rating from Fitch Ratings. That way, this bond is ranked as worthy to invest in.
The bonds themselves have a coupon of 11% with a three-year tenor. The funds from the issuance of the bonds will be used for refinancing (56.27%), investment (21%) and working capital (22.73%). "The issuance of bonds is one of the strategies of PPRO to secure long-term funding so that it can pursue business growth targets this year," Taufik said.
For information, this bond offering is part of the PP Properti's Shelf Registration Bonds with a principal amount of Rp 2 trillion. The initial offer received an effective statement from the Financial Services Authority (OJK) on 28 June 2018. PPRO has issued phase I and II with a value of Rp 1.46 trillion. (AM/AR)