Ivan Dasa Saputra
Property developer Greenwood Sejahtera plans to raise as much as Rp 750 billion ($79 million) from the sale of corporate bonds during the third quarter of the year to finance construction projects.
Greenwood president Harry Gunawan said on Wednesday that the bonds would have a five-year maturity.
“The plan to issue the bonds has already received the approval of the shareholders at the annual general shareholders meeting,” he added.
The company plans to use the funds raised from the sale to expand its business by acquiring three or four mixed-use, high-rise developments in Jakarta, he said.
Greenwood is optimistic the country’s economic conditions would be conducive to the sale, Harry added.
The company was still trying to pick an underwriter for the bond sale.
“There are two or three underwriters that we’re still studying for the sale of the bonds,” he said.
Greenwood is targeting an increase in revenue this year to Rp 835 billion, up 271 percent from the Rp 225 billion projected revenue at the end of last year.
Greewood financial director Bambang Dwi Yanto said the drastic increase in revenue would be backed by the development of new corporate projects.
“Some of the projects that have been completed [recently] include the Peak Apartment in Setiabudi [South Jakarta], Festival Citylink [mall] in Bandung, the Lindeteves Trade Center in Glodok, [North] Jakarta, and the Emporium Pluit Mall in Pluit [North Jakarta],” he said.
The revenue increase is expected to boost the company’s net profit to Rp 433 billion, up 250 percent from last year’s final projection.
Greenwood is currently building the City Center in Jakarta’s Sudirman area. The development has been split into three phases, beginning with the construction of three office towers.