Aug 8, 2011

Agung Podomoro may upsize bonds

Property developer PT Agung Podomoro Land Tbk (APLN) obtained about Rp3 trillion demand for bonds from investors. Hence, the developer is considering to upsize its bonds by 20% of its initial size at Rp800 billion to nearly Rp1 trillion on August 24 2011.
Vice President at the company Indra Wijaya, as quoted by Bisnis Indonesia today, said the company has ended the bonds book building on last Friday. "According to joint lead underwriters, there is a Rp3 trillion oversubscribed. We consider to raise the size by 10%-20% of the initial size," he said.
Agung Podomoro is under way to issue Rp800 billion bonds with two series of 3 and 5 year. The bonds offer 9.5%-10.5% coupon for 3 year maturity and 10.5%-11.5% for the remaining series. A source familiar with the plan said Agung Podomoro may upsize the bonds to Rp1.2 trillion.
The company will use the bonds proceed to acquire 35%-100% shareholdings in two affiliated companies.
Agung Podomoro plans to raise Rp800 billion through the issuance of two series of bonds which will mature in 3 and 5 years. The acquisition is expected to be completed within 2 years.
Four lead underwriters, PT Deutsche Securities Indonesia, PT Indo Premier Securities, PT Mandiri Sekuritas, and PT Standard Chartered Securities Indonesia will arrange the issuance.
The proposed bonds have obtained A rating with outlook stable from PT Pemeringkat Efek Indonesia (Pefindo).

Disclosure: No position at the stock mentioned above.

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