MDLN issuing USD150mn bond in 2Q13
Modernland is planning to issue a USD 150mn bond in 2Q13 which will be listed in the Singapore Exchange. According to the company, the interest rate on global bond is now cheaper than rupiah bond.The proceeds will be used for land acquisition which will be developed to be an industrial and residential estate. (Investor Daily)
Comment:MDLN expects a net profit of Rp808.7bn in 2013. Issuing the bond will bear the company around Rp172.8bn of interest expense and hedging cost. Thus, dragging down their net profit to Rp635.9bn.
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