Bakrieland plans no rights issue in five years

JAKARTA: PT Bakrieland Development Tbk plans no rights issue in the next five years after conducting a similar action this year.President Director of Bakrieland Hiramsyah S. Thaib said the shares issuance with preemptive rights (HMETD) is the most secured
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News Editor - Bisnis.com 20 Desember 2010  |  11:06 WIB

JAKARTA: PT Bakrieland Development Tbk plans no rights issue in the next five years after conducting a similar action this year.President Director of Bakrieland Hiramsyah S. Thaib said the shares issuance with preemptive rights (HMETD) is the most secured funding strategy to avoid the debt risk, which once happened to the industry in 1998."This is the reason behind the rights issue. We learned from the 1998 crisis when the excess of debt devastated the property industry. However, this years rights issue was the last for the next five years," he said a property outlook 2011, this afternoon.The property companies, he added, should ideally prioritize internal cash and equity for project funding. The strategy is applied by Indonesian property companies, which somehow help it avoid the 2008 crisis that hit developed countries related to subprime mortgage loans.In the next year, he added, the company will issue bonds for IDR1 trillion at maximum. The proceeds from the bond issuance will be used to finance the development of new projects.On the other hand, the company secured a loan facility from a syndication of domestic banks led by PT Bank Negara Indonesia Tbk to finance the construction of Ciawi-Sukabumi toll road. "We havent used the facility at all," said Hiramsyah.In the closing of first trading session, the Bakrie Group's ELTY-coded shares weakened 1.24% to IDR160 per share from IDR162 in the opening. The market capitalization reached IDR6.39 trillion. (T06/NOM)

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Editor : Muhammad Fariz Aulia

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