JAKARTA - APL Realty Holdings Pte Ltd, a subsidiary of PT Agung Podomoro Land Tbk (APLN), will pay off its Senior Bonds of USD 300 million that will mature in 2024.

In the information disclosure quoted Wednesday (12/7), F. Justini Omas, Corporate Secretary of Agung Podomoro Land (APLN), said that the company will purchase 5.95% of total senior bonds in cash. "The company has requested approval from its qualified shareholders to abandon certain requirements of the indenture dated June 2, 2017, that regulates bonds and modify certain terms and conditions of the bonds according to the memorandum of buyback," Omas added.

Regarding said plan, APLN, APL Realty, and several other subsidiaries, as the guarantors of these bonds, have signed a Dealer Management Agreement for the bonds alongside Standard Chartered Bank (Singapore) Limited and MUFG Securities Asia Limited.

According to Omas, this bonds' buyback plan is a strategy of the company in managing the debts and making it a cash flow healthier and more sustainable. It also aims to optimise the capitalisation of the company amidst the market volatility and the trend of increased interest rates in the USD currency market.

As said before, APL Realty issued Senior Bonds of USD 300 million on June 2, 2017. On May 19, 2023, Moody's Investor Service announced the demotion of APLN's corporate family rating (CFR) and Bonds from Caa1 to Caa2, while the outlook remains negative. (LK/ZH)