Jakarta, April 17, 2025 - Property developer PT Modernland Realty Tbk. (MDLN) achieved a significant milestone in strengthening its financial structure. Through a Buyback and Exchange Offer of its global bonds, the company successfully reduced its foreign bond obligations by USD 104.3 million, equivalent to IDR 1.7 trillion.
Corporate Secretary General Manager of PT Modernland Realty Tbk., Danu Pate, stated that this strategic move is part of the Company’s commitment to optimizing its financial structure and ensuring operational sustainability amid the dynamics of both the national and global property markets.
Previously, the Company held two types of global bonds:
- Notes-2025, consisting of USD 130.7 million Guaranteed Senior Notes and USD 10.3 million Guaranteed Senior PIK Toggle Notes, issued by JGC Ventures Pte. Ltd.
- Notes-2027, consisting of USD 213.9 million Guaranteed Senior Notes and USD 19.1 million Guaranteed Senior PIK Toggle Notes, issued by Modernland Overseas Pte. Ltd. (MLO).
Both entities are wholly owned subsidiaries of the Company, with the total global bond value prior to the Buyback and Exchange Offer reaching USD 374.1 million.
“As part of our liability management strategy, the Company has executed the Buyback and Exchange Offer for all Notes-2025 and Notes-2027. This process was conducted under a Scheme of Arrangement approved by the majority of Notes holders and sanctioned by the Singapore High Court on January 24, 2025,” explained Danu Pate.
Under this scheme, MLO issued new bonds (New Notes-2027) worth USD 269.7 million, maturing on April 30, 2027, effective from March 27, 2025. With the issuance of the new bonds, the previous Notes-2025 and Notes-2027 are no longer valid.
Corporate Investment & Strategy Director, Fetrizal Bobby Heryunda, stated that the Buyback and Exchange Offer not only reduced debt by IDR 1.7 trillion but also maintained the same coupon rate of 3% cash and 3% payment-in-kind. “This reflects our successful negotiation of favorable terms while strengthening the Company’s short-term financial position,” said Fetrizal Bobby Heryunda.
He added that the debt reduction is expected to positively impact the Company’s financial structure, including improving liquidity ratios and net profit for the current year. Previously, foreign bond debt accounted for approximately 90% of the Company’s total bond and banking liabilities.
With a more balanced debt structure, the Company is in a stronger position to operate effectively and execute its growth strategy, including the development of residential and commercial property products.
“The Company remains optimistic about the property market outlook, particularly landed homes, which are the backbone of the national industry. We are committed to delivering innovative products in line with market trends and consumer purchasing power, without compromising quality standards in every project,” concluded Fetrizal Bobby Heryunda.
For further information:
Corporate Secretary
PT Modernland Realty Tbk.
Email: corporate.secretary@modernland.co.id
Website: www.modernland.co.id