PT Pakuwon Jati Tbk (PWON) plans to issue global bonds this year.

The corporate action plan was revealed in the results of Fitch Ratings' assessment on April 20, 2021. Fitch has assigned a 'BB' rating to Pakuwon's proposed global bonds.

A strong investment property portfolio, and it is strategically located in Jakarta, and Surabaya supports Pakuwon's rating. As a result, the potential provided a solid net interest coverage of more than ten times.

However, its rating is constrained by its high asset concentration, or more than 70% of its investment property EBITDA comes from four mixed-use projects in two cities.

The proceeds from the global bond offering that the corporate entity will guarantee will be used to refinance the US$250 million maturing global bonds in February 2024 and general corporate purposes.

Fitch assesses that Pakuwon has a high cash balance, low debt levels, and mature investment properties, all