ELTY Bakrieland Development Tbk

Bakrieland Considers IDR2 Tn Financing Options


Wednesday, 6 January 2010 08:18:52
StockWatch (Jakarta) - PT Bakrieland Development Tbk (ELTY) needs approximately IDR2 trillion for financing the company's projects in 2010 that consist of city property, landed residential and tollroads.

"The amount includes the cost for partnership in tollroad development projects. We cannot give the detail, but there are more than two roads in Java we are discussing about," Bakrieland's president Hiramsyah Thaib said on Monday (4/1) at the Indonesia Stock Exchange (IDX) building Jakarta.

He said the financing option is not final, and the company is considering to issue US dollar bonds, or a combination of rupiah bonds and rights issue, or setting up a strategic partnership. "We are considering the options," he said.

Bakrieland has the option of selling a stake at the company's PT Bakrie Toll Road by the end of 2010 for financing its projects. "Maybe we will sell about 10% stake. Bakrie Toll Road has planned to issue IDR500 billion bonds this year for its tollroad constructions," he said.

Besides, Bakrieland has planned to allocate IDR510 billion for buying back the company's shares in February 2010, as the company's share price was down on negative sentiment after Dubai World's default. Dubai World's subsidiary Limitless LLC, which is Bakrieland's strategic partner in various property projects.

He said further that the shares to be bought back will be sold in the market via two options, in form of conversion bonds or blocksale to a strategic partner. (irawan/bw)