Modernland Realty builds on Jokowi factor

The Indonesian property developer sold a $190 million bond, fulfilling its plan to cut overall funding costs and extend its debt maturity profile.

Modernland Realty, which builds luxury townships in Indonesia, priced a capped $190 million five-year bond that is callable in year three on Tuesday as investors cashed-in on rare high-yield Indonesian credit post-election.

The group took the opportunity to replace its existing $150 million three-year senior unsecured notes maturing in 2016 with the new bonds. This helped the group towards its goal of reducing overall funding costs and lengthening its debt maturity profile.

Existing bondholders agreed to an exchange amount of $91.6 million resulting in a new cash amount of $98.4 million, according to a source close to the deal. 

Modernland will use the...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222