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Bumi Serpong appoints 4 underwriters for Rp 1.5t bonds
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Bumi Serpong Damai corporate secretary and head of investor relations Christy Grassela (left), director Lie Jani Harjanto (second left), president director Fransiscus Xaverius RD (second right) and director Hermawan Wijaya listen to a question during a press conference after the company's annual general shareholders meeting on Thursday. (thejakartapost.com/Sepsha Restian)
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ublicly listed property developer Bumi Serpong Damai has appointed four underwriters for its Rp 1.5 trillion (US$110 million) bonds scheduled for this year – half of its shelf registered bonds totaling Rp 3 trillion.
The four underwriters are Sinarmas Securities, Mandiri Securities, Indo Premier Securities and BCA Securities.
Bumi Serpong director Hermawan Wijaya said 40 percent of the bond proceeds would be used for land acquisition and infrastructure, with another 40 percent for property development and 20 percent for working capital.
“The bond issuance is part of our commitment to seek funding to support the expansion that will sustain the growth of the company's performance,” he said on Thursday in Tangerang, Banten.
The debt papers, Hermawan continued, would be issued in two series with five-year and seven-year tenors, respectively, and offered for local and global investors.
The company, which is the largest property firm in Indonesia in terms of land bank, has used its fixed asset as a guarantee for the bonds.
Dividends
At the same occasion, Hermawan announced the company’s plan to pay out only 4.5 percent of its 2015 net income as dividends to shareholders on June 15. The low dividends were related to the high amount of capital that the company needs.
“We still need funds to expand our projects and subsidiaries,” he said, adding that the company was allocating Rp 4 trillion in capital expenditure this year.
The final dividend, amounting to Rp 96.23 billion, or Rp 5 per share, was approved at the company's annual general shareholders meeting on Thursday.
Bumi Serpong recorded a net profit of Rp 2.1 trillion last year, a 44 percent drop from Rp 3.8 trillion it pocketed in 2014. The firm registered Rp 6.2 trillion in revenue in 2015, equating to 11 percent yearly growth. (sha/ags)
