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.