JAKARTA (Yosefardi) – Property developer PT Alam Sutera Tbk (ASRI) plans to issue global bond worth US$200 million this year, to accelerate the buyback of its existing bond debt of US$150 million issued by its subsidiary Alam Sutera International Pte Ltd.
This global bond issue aims to reducing interest expenses by around 1.9%. The property sector is expected to slowdown this year, impacting on lower profit margin for property developers.
On 7 January 2014, Alam Sutera announced a tender offer to repurchase any and all of the USD150 million 2017 senior unsecured notes issued by Alam Sutera International Pte Ltd. The purchase will be funded by proceeds from the proposed USD senior unsecured notes to be issued by Alam Synergy Pte Ltd.
As of 30 September 2013, Alam Sutera had an adjusted EBITDA/interest of 4.8x and debt/EBITDA of 2.5x. It has cash and cash equivalents of IDR1.3 trillion and no short-term debt maturing over the next 12 months.