Alam Sutera plans to issue IDR1.1 trilion bonds

PT Alam Sutera Realty Tbk, property developer in Serpong, considers the issuance of dollar denominated bonds this year, in amount of IDR1.1 trillion.

Such notion is triggered by lower rate and easier procedures compared to the issuance of rupiah denominated bond issuance.

The company is still reviewing the types of bonds scheduled to be issued in the third quarter this year. Thus, the property developer is yet to appoint any underwriter for such corporate action.

The company, is still facing rating process from Fitch Ratings agency. The entire process is expected to complete by the end of this month.

The proceed bonds will be used to acquire areas in Bali and Jakarta. Regarding the plan to construct theme park, Alam Sutera is now still designing the exact construction, involving foreign designer. The construction process will begin in 2012.

The theme park will employ family park concept on 15 hectare area in Serpong. The investment costs around IDR200 billion-IDR300 billion.

Based on the 1Q/2011 financial statement, Alam Sutera recorded IDR405.05 billion sales income, a rise compared to IDR205.09 billion in the same period at year earlier.The cost of goods sold only rose to IDR195.97 billion compared to the earlier period at IDR117.7 billion, boosting cost of goods sold to IDR209.08 billion compared to IDR87.38 billion in the first quarter of 2010.

The company’s net income in the first three months this year also rose to IDR158.75 billion compared to IDR63.03 billion in the same period last year.As per 31 March 2011, Alam Sutera’s shareholders consist of PT Tangerang Fajar Industrial Estate (16,7%), PT Selaras Citamanunggal (11,86%), PT Ma­nunggal Prima Development( 11,42%), PT Bukit Asri Padang Golf (5,94%), PT Argo Manunggal Land Development (3,97%), and public (50,11%).