Indonesia Dealbook: Ciputra Property, Sinarmas Group unit tie up debt financing

Photo by dian swastatika sentosa

Indonesian developer PT Ciputra Property Tbk (CTRP) has secured a Rp1.4 trillion ($103 million) loan facility for the development of Ciputra Mall 2. At the same time, Sinarmas group‘s PT Dian Swastatika Tbk (DSSA) has received $310 million from PT Bank Mandiri Tbk (BMRI).

Ciputra Property unit gets $103m loan

Three domestic banks – PT Bank ICBC Indonesia, PT Bank Maybank Indonesia Tbk, and PT Bank CIMB Niaga Tbk – have agreed to extend a loan facility worth Rp1.4 trillion to PT Sarananeka Indahpancar, a subsidiary of Ciputra Property. The funds will be used to develop the company’s shopping mall and commercial center, Ciputra Mall 2.

Director of Ciputra Property Artadinata Djangkar said, the facility is divided into two parts – payment to income (PTI) I worth Rp950 billion and PTI II worth Rp450 billion.

“The loan agreement was signed on May 19. We will give some of our assets as guarantee,” said Djangkar in a statement.

In first quarter 2016, parent company PT Ciputra Development Tbk (CTRA) posted an 8 per cent drop in revenue to Rp 1.3 trillion from Rp 1.4 trillion in the same period last year. Net profit fell 37 per cent from Rp228 billion to Rp114 billion. The drop was caused by a negative growth in residential sales, which was recorded at 15 per cent.

Despite the weakening performance in the first three months, Ciputra remains upbeat that it could achieve growth of between 15 and 20 per cent.
It said it remained hopeful that the economy will bounce back in the near future after posting sluggish growth recently.

The Indonesian economy only expanded by 4.92 percent year-on-year ( yoy ) in the first quarter, a result unexpected by many. The sluggish growth was reflected in some sectors related to the property industry, namely construction and real estate.

Dian Swastatika inks facility with Bank Mandiri

Energy and infrastructure company Dian Swastatika through its unit PT SKS Listrik Kalimantan (SLK) signed a loan agreement with Bank Mandiri worth $310 million on May 18.

Hermawan Tarjono, Director and Corporate Secretary Dian Swastatika said the cash will be used to fund various ongoing projects.

The company allocates $200 million for capital expenditure this year to develop power plant projects in its pipeline.

It is now working on two new coal-fired power plant projects worth $620 million. The two projects consist of a 2×150 megawatt power plant project called Sumsel-5 Musi Banyuasin in South Sumatera, and a 2×50 MW of Kendari-3 in Southeast Sulawesi.

Construction of the Sumsel-5 plant, estimated to cost about $420 million, has reached 90 percent completion and by the end of the year is set to open for operation.

Meanwhile, the Kendari-3 is scheduled to begin construction in early 2016, and will cost about $200 million. Dian Swastatika has set a target to start operating the plant in 2018.

Also Read:

Indonesia property developer Ciputra plans to raise $358m via REIT, secures $30m debt from IFC

Lippo Group to move REITs from Singapore to Indonesia: CEO

Sinar Mas eyes backdoor listing in SG with $1.2b deal

Jakarta-based online grocery startup HappyFresh raises $12m in Series A led by Vertex, Sinar Mas

Fortune Mate Indonesia to acquire Sinarmas Group’s unit for $19.8m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.