JAKARTA - PT Agung Podomoro Land Tbk (APLN) is discussing with notes’ holders regarding the payment of senior notes worth USD 131.96 million, which will mature on June 2, 2024. The cancellation of tender offer of senior notes by APL Realty, APLN’s subsidiary, on November 22, 2023, resulted in the demotion of corporate family rating (CFR) from Caa3 to Caa2.

In the press release quoted Monday (18/3), F. Justini Omas, Corporate Secretary of APLN, confirmed that the rating downgrade by Moody’s on March 14 is linked to the opinion that the company has short-term refinancing needs. “This rating shift also considers the company’s liquidity, which is still weak, and unsustainable capitalisation structure,” she added.

In addition, Moody’s also demoted Senior Notes’ rating from Caa3 to Ca with negative prospect in all ratings. This demotion is to reflect the risk of legal subordination for the winner of the senior notes tender offer.

“The guaranteed loan is the majority of the company’s capitalisation structure. The prospect of the rating remains negative, indicating the increased risk of refinancing within the next 12 to 18 months,” Omas explained.

As is known, on June 2, 2017, APL Realty, APLN’s subsidiary, was issuing Senior Bonds with a tenor of 7 years and a coupon of 5.95% per annum, as well as a principal worth USD 300 million, in Singapore Stock Exchange (SGX).

APL Realty then concluded the tender offer on August 2, 2023, before paying some of the principal of the notes, leaving USD 131.96 million unpaid.

On November 15, 2023, APL Realty planned another tender offer of these senior notes worth USD 131.96 million with the funding from financing facility. However, APL Realty cancelled its tender offer after the conclusion of the tender offer period on November 21, 2023. (LK/ZH)