JAKARTA. Leading fashion and lifestyle retailer, PT Mitra Adiperkasa (MAP), announced on Wednesday that they would issue new bonds worth up to Rp 500 billion (US$52.1 million) to strengthen their business activities.The issue will comprise Serie A bonds with a tenure of three years and Serie B bonds with a tenure of five years. The Indicative Coupon Range, at fixed rate, will be between 7.5 percent to 8.5 percent for the Serie A bonds, and between 7.75 percent to 8.75 percent for the Serie B bonds. The interest from the bonds will be paid every three months.Domestic rating agency PT Pemeringkat Efek Indonesia (Pefindo) has given the bonds a rating of “idAA-” (double A minus). Pefindo recently upgraded MAP’s corporate rating from A+ to AA- due to the retailer’s positive financial performance. The underwriters for the bond issuance will be PT Indo Premier Securitas and PT Mandiri Sekuritas.Fetty Kwartati, corporate secretary of MAP, said that the retailer sought to maintain its dominance in the market. MAP holds licenses for over 100 international brands targeting the middle and upper market segments. The brands include clothing, such as Zara and Massimo Dutti, as well as food and beverages such as Starbucks and Burger King.“The funds from the issuance of the new bonds will be used to refinance existing bonds and to support working capital,” Fetty said. She added that as much as Rp 295 billion of the proceeds from the issuance of the new bonds would go into the refinancing of bonds issued in 2009.The company would then utilize the remainder of the proceeds to fund operational activities, such as the purchase of goods and the remuneration of employees. These operational activities would be funded using internal cash as well, she said.“We need these operational funds in lieu of our future expansion plans, which entail the opening of new stores,” Fetty said.She added that the book building period was scheduled for Nov. 14-26, and the bonds were expected to be issued and listed on the Indonesia Stock Exchange (IDX) in December this year. The proceeds of the bonds would then become available for use next year.In their third quarter report, the retailer reported that they earned net revenues of Rp 5.4 trillion in the first nine months of the year, or 29 percent higher than net revenues of Rp 4.2 trillion recorded in the same period last year. Retail and wholesale sales were their top revenue earners, generating 87.4 percent, or Rp 4.7 trillion, of net revenues.The company has previously said that they expect to grow by roughly 25 percent next year thanks to the growing purchasing power of the expanding middle class in Indonesia. The company also expects robust sales toward the end of the year as the holiday season kicks in.“The last quarter is our strongest,” Fetty said. She added that the company was on track in their plans to open around 300 stores by the end of the year.MAP operates 1,266 retail outlets in 42 cities in Indonesia. The retailer has brought several new brands onto the market this year, including clothing brand Hoss Intropia and accessory brand Accessorize. (Mariel Grazella/ The Jakarta Post)
MAP to issue bonds for refinancing, operations
JAKARTA. Leading fashion and lifestyle retailer, PT Mitra Adiperkasa (MAP), announced on Wednesday that they would issue new bonds worth up to Rp 500 billion (US$52.1 million) to strengthen their business activities.The issue will comprise Serie A bonds with a tenure of three years and Serie B bonds with a tenure of five years. The Indicative Coupon Range, at fixed rate, will be between 7.5 percent to 8.5 percent for the Serie A bonds, and between 7.75 percent to 8.75 percent for the Serie B bonds. The interest from the bonds will be paid every three months.Domestic rating agency PT Pemeringkat Efek Indonesia (Pefindo) has given the bonds a rating of “idAA-” (double A minus). Pefindo recently upgraded MAP’s corporate rating from A+ to AA- due to the retailer’s positive financial performance. The underwriters for the bond issuance will be PT Indo Premier Securitas and PT Mandiri Sekuritas.Fetty Kwartati, corporate secretary of MAP, said that the retailer sought to maintain its dominance in the market. MAP holds licenses for over 100 international brands targeting the middle and upper market segments. The brands include clothing, such as Zara and Massimo Dutti, as well as food and beverages such as Starbucks and Burger King.“The funds from the issuance of the new bonds will be used to refinance existing bonds and to support working capital,” Fetty said. She added that as much as Rp 295 billion of the proceeds from the issuance of the new bonds would go into the refinancing of bonds issued in 2009.The company would then utilize the remainder of the proceeds to fund operational activities, such as the purchase of goods and the remuneration of employees. These operational activities would be funded using internal cash as well, she said.“We need these operational funds in lieu of our future expansion plans, which entail the opening of new stores,” Fetty said.She added that the book building period was scheduled for Nov. 14-26, and the bonds were expected to be issued and listed on the Indonesia Stock Exchange (IDX) in December this year. The proceeds of the bonds would then become available for use next year.In their third quarter report, the retailer reported that they earned net revenues of Rp 5.4 trillion in the first nine months of the year, or 29 percent higher than net revenues of Rp 4.2 trillion recorded in the same period last year. Retail and wholesale sales were their top revenue earners, generating 87.4 percent, or Rp 4.7 trillion, of net revenues.The company has previously said that they expect to grow by roughly 25 percent next year thanks to the growing purchasing power of the expanding middle class in Indonesia. The company also expects robust sales toward the end of the year as the holiday season kicks in.“The last quarter is our strongest,” Fetty said. She added that the company was on track in their plans to open around 300 stores by the end of the year.MAP operates 1,266 retail outlets in 42 cities in Indonesia. The retailer has brought several new brands onto the market this year, including clothing brand Hoss Intropia and accessory brand Accessorize. (Mariel Grazella/ The Jakarta Post)