REPUBLIKA.CO.ID, JAKARTA -- Publicly listed property developer PT Summarecon Agung (SMRA) will issue the first phase of its conventional bonds and Islamic bonds (sukuk), worth Rp600 billion this year, to expand its business and strengthen its working capital.

Summarecon President Director Johanes Mardjuki said here on Wednesday that the company will use 70 percent of proceeds from these bonds to expand its business in the property sector and 30 percent to strengthen its working capital.

"The high demand for housing and commercial products in and around Jakarta (Jabodetabek), as well as in other big cities, has prompted the company to develop integrated cities in other regions," he said.

As an integrated city developer, Summarecon has land in and around Jakarta, including Kelapa Gading, Serpong and Bekasi, to develop integrated cities, he said.

"To us, property is a long-term industry. We predict the property industry will grow and develop in the future. With the issuance of the first phase of the conventional bonds and sharia bonds and we hope the company's performance will continue to grow in the future," he said.

The bonds include conventional bonds worth Rp450 billion and sharia bonds valued at Rp150 billion.

Local rating agency PT Pemeringat Efek Indonesia (Pefindo) has assigned its idA+ (single A plus) rating to the bonds, with a stable outlook.

Summercon has appointed PT Indo Premier Securities, PT Andalan Artha Advisindo Sekuritas, PT Makinta Securities and PT Mandiri Sekuritas as underwriters of the bonds.

The bonds will be offered from November 6 to 20, 2013 and listed at the Indonesia Stock Exchange (BEI) on December 12, 2013.

Andri Rukminto, president director of PT Andalan Artha Advisinso (AAA) Sekuritas, said the five-year bonds will be issued at a coupon of 10-11 percent, with yield installments to be made every three months.

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