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Alam Sutera will refinance its global bonds

21 August 2019 10:27

JAKARTA. PT Alam Sutera Realty Tbk plans to issue bonds to repay its global bonds worth US$ 175 million with an interest of 11.5% which will mature in 2021.

President Director of Alam Sutera Realty, Joseph Sanusi Tjong, said that the option was wide open for the company because global bonds that will mature in April 2021 could be called in April 2020.

"Indeed we have a plan to issue [global bonds] and we are waiting for the right time because we get a lot of feedback from investors to slowly reduce exposure to debt in (US) dollars," he said on Tuesday (8/20/2019).

ASRI currently has two global bonds, the first one will mature in April 2021 (US$ 175 million) and the other one will mature in March 2022 (US$ 370 million).

Joseph said that the company will refinance the first global bond soon because it has an interest rate of 11.5% per year.

The company issued the bond this year to cover the debt of its subsidiary, Alam Synergy Pte Ltd. in Singapore. Joseph said ASRI issued bonds at the beginning of the year amid difficult conditions, which make its term shorter with a higher interest rate than the market average. (AM/AR)

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