Adhi Karya's Subsidiary Will Issue IDR 500 Billion Bond

JAKARTA - PT Adhi Commuter Properti (ADCP), a subsidiary of STATE-OWNED PT Adhi Karya (Persero) Tbk, prepared several funds for expansion by issuing Bonds I Adhi Commuter with a principal amount of as much as IDR 500 billion consisting of Series A with a tenor of 367 days and Series B with a tenor of three years.

"All funds from the bond issuance will be used to finance capital expenditures to increase the portfolio and expand the business", said President Director of PT Adhi Commuter Properti Rizkan Firman through a statement in Jakarta, quoted from Antara, Wednesday, May 12.

The initial bond issued by ADCP obtained the triple B rating result from Pefindo. During the book-building period (2-3 April 2021) it has been absorbed with a total value of IDR 337 billion. With the details of Series A as much as IDR 328 billion and Series B as much as IDR 9 billion. Currently included in the public offering stage with the best effort worth IDR 163 billion.

According to Rizkan, the response at the time of the public offering was very good, marked by the obtaining of standby investors who will take the overall value of the best effort offered.

"Seeing the positive interest of the issuance of this bond ADCP is optimistically oversubscribed to the target. This good response shows the market is optimistic about the concept of transit-oriented development (TOD) based area that is focused on ADCP", said Rizkan.

Moreover, he continued, the concept of property-based integration with mass transportation has proven successfully developed in foreign countries including in several neighboring countries with high growth in property and business value, as well as supporting better urban planning and structuring.

Bond interest will be paid every three months from the date of issuance. Bond interest payments will be made on August 20, 2021, while the last bond payments and bond maturities will be May 27, 2022, for Series A bonds and May 20, 2024, for Series B bonds, respectively.

PT Sucor Sekuritas and PT Aldiracitra Sekuritas Indonesia as the underwriters of the bonds, while the Regional Development Bank of West Java and Banten (Bank BJB) was appointed as Wali Amanah in the issuance of the I Adhi Commuter bond.

On May 7, 2021, ADCP has obtained an effective statement by the OJK, and starting from May 11-17, 2021 will be held a public offering period, as well as planned distribution of bonds on May 20, 2021.

Rizkan added that based on the outlook, the property industry benefited greatly from the relaxation of both fiscal and monetary policy. Another factor is that there are very high opportunities for property availability where the housing backlog, especially in Jabodetabek is still high, especially in the middle class.

"It is by the company's segmentation target of property sales ranging from IDR 300 million to IDR 2 billion. In addition, the growing need for public transportation provides a great opportunity to property developers who have direct access to mass transportation", said Rizkan.

Based on competitive advantage, ADCP projects growth until 2025 in terms of marketing sales to increase significantly with an average growth rate per year or a CAGR of 40 percent to 50 percent, both for apartment sales products, homesites, offices, commercial areas as well as hotel operators.

Meanwhile, in terms of revenue ADCP is projected to get CAGR growth of 25 percent to 35 percent. ADCP has developed several property areas at Jabodebek LRT station points through LRT City and Adhi City products.

In addition, ADCP has also developed other mass transportation-based property areas such as commuter line station points and Transjakarta Bus Pool. Until now ADCP has developed 12 property areas based on mass transportation in Jabodetabek, with landbanks reaching 140 ha.