VIVAnews - PT Bakrieland Development Tbk (ELTY) through its subsidiary, BLD Investments Pte Ltd has increased its value of conversion emission bonds to US$155 million from the previous US$150 million.
“This is the fulfillment of market demand,” Bakrieland Development Corporate Secretary, Nuzirman Nurdin, told VIVAnews on Friday, March 19.
According to him, the demand on the corporate bond conversion offered in Singapore is quite high. “The demand even exceeds the number,” he said.
However, Bakrieland will not entirely meet the investors’ demand because the company’s actual need is only about US$150 million.
Nuzirdan also explained that the private conversion bond placement will be closed on Tuesday, March 23. “After the closing, we’ll figure out which investors are interested”.
The bonds will be issued under the value of 100 percent out of the core value of 8.625 percent.
Earlier, Bakrieland has appointed Credit Suisse (Singapore) Limited as the placement agent for the private placement of the bond conversion.
Earlier, Bakrieland intended to issue US$150 million of maximum bond conversion with five-year tenure.
“The bonds will be offered to institutional financial investors,” Bakrieland President Director Hiramsyah S Thaib says in a written statement published by the IDX.
Thaib also said proceeds from the private placement will be used for general corporate funding, including working capital.
“The company will also use it to repay liabilities,“he said.
The liabilities include the ones owed from subsidiaries and the equity swap, which will be signed by the publisher and Credit Suisse International.
The equity swap transaction aims to protect the value of obligation conversion.
Meanwhile, the holders of the obligations will have conversion rights to trade their obligations with the company’s shares. Conversions can be made 41 days after the closing date until seven days before the maturity date.
Nevertheless, the company has the rights to pay for obligations that will be converted in cash if the company does not have enough shares to be converted or fails to issue the required shares to exercise the conversion rights.
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Translated by: Nataya Ermanti
