Issue global bonds, Pakuwon Jati (PWON) shares are recommended to buy
KONTAN.CO.ID - JAKARTA. PT Pakuwon Jati Tbk (PWON) has issued debt securities worth US $ 300 million on April 29, 2021. These bonds have a coupon of 4.875% per annum and will mature in 2028.
Director and Corporate Secretary Pakuwon Jati Minarto explained that the bond offering has successfully attracted the interest of many global investors. "With an order value of US $ 2 billion, which means 6.7 times oversubscribed," he told Kontan, Monday (3/5).
Minarto also explained that PWON's financial ratio after the issuance of new bonds will be well maintained and even show an increase compared to 2020. In 2021, PWON is targeting a net debt to equity ratio of 1.6%, net debt to assets ratio of 1.1% and recurring. EBITDA coverage of 5.5 times.
This is in line with Moody's prediction of assigning a Ba2 rating to PWON's issued global bonds. The rating is pinned because PWON's credit metric is considered quite strong and has very good liquidity, supported by a balanced income between the property development business and property investment.
Moody's predicts that PWON's credit profile will remain strong in 2021 and 2022. This year, its recurring EBITDA coverage is predicted to be around 5.5 times and in 2022 it will be 7.5 times.
In 2020, PWON's net debt to equity ratio was recorded at 6%, net debt to assets ratio of 4% and recurring EBITDA coverage of 4 times.
Sucor Sekuritas analyst Joey Faustian said that after issuing these global bonds, PWON's financial condition is still very good because 83% of the value is only for refinancing old debts. "And PWON's net gearing position is only 10% better than peers in the industry," added Joey.
Thus, Joey recommended buying PWON shares with a target price of Rp. 640. On Monday (3/5) PWON shares closed up 1.89% to the level of Rp 540 per share.
Reporter: Benedicta Prima | Editor: Wahyu T. Rahmawati