Property developer PT Pakuwon Jati Tbk (PWON), controlled by businessman Alex Tedja, is seeking a Rp1 trillion financing in a bid to refinance its debt.
Finance Director Jati Minarto Basuki, as quoted by Bisnis Indonesia, said the debt is consisting of US$-denominated bonds and bank loan facilities. The refinancing program is intended to put down interest rate burden.
Pakuwon Jati owes Rp2.05 trillion to lenders. Bonds are counting US$43 million. The company is planning to make early payment for bonds, using a current momentum of low interest rate.
"We have to pay 12% interest rate. By refinancing the bonds, we expect to have interest saving of 1%-2%," he said.
The company currently is in talks with three or four banks to explore the refinancing facilities. Pakuwon estimates a Rp1.5 trillion revenue last year with net profit of Rp375 billion-Rp405 billion.
Disclosure: No position at the stock mentioned above.
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