Dec 10, 2010

Bakrieland considers Rp1 trillion bond

Property developer PT Bakrieland Development Tbk plans bond issuance valued at Rp1 trillion in 2011 to meet the needs of corporate capital expenditure next year that set at Rp3 trillion.
President Director Bakrieland Hiramsyah S Thaib said the bond issuance is likely conducted when the market condition enables the company to conduct such issuance.
“It’s probably on second semester next year but still looking for a proper probability. The bond issuance fund will be used to fulfill part of our capital expenditure,” he said last night.
According to Hiramsyah, most of the capital expenditure will be used to expand its property business while the rest to expand its business in infrastructure sector, i.e. toll constructions.
Several locations that will be developed are Bakrie Nirwana and Lido Bogor, West Java. However, Hiramsyah refused to answers when asked about the fund allocation for the development of amusement center in West Java.
Previously, Bakrieland has issued bond and through its subsidiary, BLD Investments Pte Ltd, has appointed Credit Suisse (Singapore) Limited as a placement agent for the private placement of convertible bond.
Bakrieland through its subsidiary has issued convertible bond valued US$150 million with five years tenor. The bond private placement fund was used generally for corporate financial needs including its working capital.
Meanwhile, Bakrieland is currently selecting a number of companies for partnership in developing its infrastructure business.
"There are several companies that being selected to jointly develop a number of toll roads. Later, we will inform you after the selection is complete," Hiramsyah said.

Disclosure: No position at the stock mentioned above.
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