TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Summarecon issues bonds for expansion

Publicly listed property developer PT Summarecon Agung issued Wednesday its first Islamic bonds (sukuk), worth Rp 200 billion (US$21

The Jakarta Post
Thu, May 8, 2008

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Summarecon issues bonds for expansion

Publicly listed property developer PT Summarecon Agung issued Wednesday its first Islamic bonds (sukuk), worth Rp 200 billion (US$21.69 million), and conventional bonds, worth Rp 100 billion, carrying returns of between 13.75 and 14 percent per annum.

The bonds, to be offered between June 10 and 12, would have a five-year maturity period and would be listed on the Indonesia Stock Exchange on June 18, President Director Johannes Mardjuki said Wednesday during a press conference.

"Around 70 percent of the proceeds from these bonds will be allocated for purchasing land in Kelapa Gading and its surrounding area in North Jakarta and 30 percent for working capital," he told reporters.

Corporate secretary Michael Yong said previously the company intended to issue up to Rp 500 billion in bonds.

"Since interest rates on state bonds have increased to 12.5 percent from less than 11 percent two months ago, we decided to reduce our bonds to Rp 300 billion," he said.

Summarecon has appointed PT Andalan Artha Advisindo Sekuritas and publicly listed PT Kresna Graha Sekurindo to underwrite the bonds.

The company's net profit in the first quarter decreased to Rp 36.76 billion from Rp 43.83 billion due to the increasing tax charge, Michael said.

In anticipation of increases in the price of construction materials, the company has signed agreement contracts with its suppliers to ensure fixed prices for six months to a year. -- JP/rff

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Generating Questionnaires

Thank You

Thank you for sharing your thoughts.
We appreciate your feedback.