SSIA is Seeking USD126m of Loan

PT Surya Semesta Internusa (SSIA IJ, Neutral, TP: IDR1,025) is seeking external loan of USD126m in order to fund the development of SSI Tower in Jakarta. The external fund will be around 70% of the total investment of USD180m. The company intends to combine USD& IDR based loan to achieve the best cost of fund. Meanwhile, the spaces in the tower will be rented or leased in order to get recurring income for the company. Aside from the tower development, SSIA is also developing 5 new hotels this year with total investment of IDR250-300bn. Management targets to have 40 hotels by 2019.