Jan 12, 2011

Ciputra Development seeks Rp500 bio

Property developer PT Ciputra Development Tbk (CTRA) is considering to seek Rp500 billion loan in a bid to fulfill capital expenditure (capex) requirement of Rp2 trillion this year.
Despite inflation concern and potential interest rate hike, the company still sets a 40% increase in sales target in 2011 from last year's level.
Ciputra Development Tulus Santoso said the company aims to use capex to continue projects developments. The capex is also required to underpin inorganic growth. 
"We allocate Rp2 trillion capex, most of it will be generated from internally cash flow. If additional cash is needed, we prefer bank loan rather than financings from the capital market," he said as reported by Bisnis Indonesia today.
With Rp1.5 trillion cash on hand, the company will need a bank loan of Rp500 billion to meet all the financing for projects development.
According to the plan, the capex will be used to bankroll main projects such as Ciputra World Jakarta, developed by PT Ciputra Property Tbk, and Ciputra World Surabaya, which is currently established by PT Ciputra Surya Tbk.

Disclosure: No position at the stock mentioned above.  

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