Issuing Rp500 billion bonds, Adhi Commuter Properti offers 10.5-11% coupons
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Rilis Obligasi Rp500 Miliar, Adhi Commuter Properti Beri Kupon 10,5-11%
11 May 2021
PT Adhi Commuter Properti (ACP), a subsidiary of PT Adhi Karya Tbk (ADHI), is issuing Rp500 billion in bonds in 2021. The company is offering coupons of around 10.5% to 11%.
Adhi Commuter Properti’s bonds are divided into two series. Series A is worth Rp328 billion with coupons of 10.5% per year and a tenor of 367 days from the issuance date. Series B is worth Rp9 billion with coupons of 11% and a tenor of 3 years. The remaining Rp163 billion in Series A and Series B will be guaranteed under best effort.
“If the amount guaranteed under best effort is not fully sold, then the remaining [bonds] will not be the company’s liability to be issued,” their management explained in an official statement on Monday (10/5).
Moreover, the bond coupons will be paid every quarter. The first payment will be provided on 20 August 2021. Meanwhile, the last bond coupon payment and the principle settlement will be provided on 27 May 2022 for Series A and 20 May 2024 for Series B. The bonds will be fully repaid on the due date.
Adhi Commuter Properti bonds have been rated BBB by PT Pemeringkat Efek Indonesia (Pefindo). An effective statement was received from OJK on 7 May 2021. Then, the public offering period would be implemented from 11 to 17 May 2021, the date of allotment on 18 May 2021, the electronic distribution date of the bonds and the subordinated bond on 20 May 2021, and the bonds will be listed on the Indonesia Stock Exchange (IDX) on 21 May 2021.
PT Sucor Sekuritas and PT Aldiracita Sekuritas Indonesia will act as underwriters. Meanwhile, PT BPD Jawa Barat dan Banten Tbk (BJBR) will act as the trust-agent.
Sucor Sekuritas will act as the underwriter for Rp296 billion of bonds in Series A and Rp2 billion of bonds in Series B, so the total will be Rp298 billion. Aldiracit Sekuritas will be the underwriter of Rp32 billion of bonds in Series A and Rp7 billion of bonds in Series, so the total is Rp39 billion. Hence, the two securities will be the underwriters for Rp337 billion of bonds that are issued by Adhi Commuter Properti worth Rp500 billion in total.
Previously, Adhi Commuter Properti President Director, Rizkan Firman, explained that funds from the bond issuance would be used to add more land banks and to fund several projects. The corporate action is planned in line with the Covid-19 pandemic easing off in early 2021. Hence, the company predicts that the market will return to the normal condition this year.
“Adhi Commuter Properti has stated their business forecast for the next five years with significant growths in high rise, landed housing, and commercial area segments,” he said.
In the next five years, he continued that his company would conduct handovers for almost all of Tower 1 and Tower 2 of projects carried out from 2020 to 2021. “The company is optimistic about their marketing sales growing 59.4% in the next five years,” Rizkan mentioned.
Until March 2021, Adhi Commuter Property logged 400% increase in marketing sales (year on year). This increase is a signal that the property sector is recovering, even though it has yet to reach the condition before the pandemic.
On the other hand, Adhi Commuter Properti is planning to conduct an initial public offering (IPO) this year. This is one of the corporate actions that will be carried out by the company this year. Moreover, in 2021, the company is targeting sales to surpass Rp1.3 trillion.
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