After a long negotiation for 11 weeks, PT Bumi Resources Tbk stock will be controlled by three owners other than PT Bakrie & Brothers, namely Northstar Pacific Partners Limited, Brentwood Ventures Pte Ltd, and Ancora Group.
The three companies will control shares in the largest Indonesian coal company after it completes the negotiation to buy Bakrie & Brothers's debts of US$751.5 million. The debts come from three institutions, namely Odickson Finance (the largest creditor), ICICI Bank Ltd India, and JPMorgan.
Northstar Pacific takes over US$575 million debt from Odickson, Brentwood US$104.5 million from ICICI Bank, and Ancora Group US$72 million from JPMorgan.
All of the debts taken over have Bumi shares as collaterals, save debts to Odickson, which also have as collaterals shares of PT Energi Mega Persada Tbk, PT Bakrieland Development Tbk, PT Bakrie Sumatera Plantations Tbk, and PT Bakrie Telecom Tbk.
Bakrie and Northstar have agreed to set up a new joint venture controlling a 21.4% stake in Bumi. In the joint venture Bakrie controls a 70% stake and Northstar the rest.
Friday, December 26, 2008
Tuesday, December 23, 2008
Erry, strong candidate for President Commisioner Pertamina
The SOE Ministry has prepared the former Chairman of Indonesian Corruption Eradication Commission (KPK) Erry Riyana Hardjapamekas to become the President Commissioner of Pertamina.
Bumi Cancels Plan to Use Credit Suisse Loan
PT Bumi Resources, Asia's biggest exporter of power-station coal, canceled a plan to use a $75
million loan from Credit Suisse Group to buy back shares.
Bumi will use the funds for ``general purposes,'' it said in a statement to the Indonesia Stock Exchange today.
The coal producer won't use its own shares, purchased earlier through a buyback program, as collateral for the loan, it said. Bumi said on Nov. 19 that it plans to use the Credit Suisse loan, which will mature in three years, to buy back shares.
million loan from Credit Suisse Group to buy back shares.
Bumi will use the funds for ``general purposes,'' it said in a statement to the Indonesia Stock Exchange today.
The coal producer won't use its own shares, purchased earlier through a buyback program, as collateral for the loan, it said. Bumi said on Nov. 19 that it plans to use the Credit Suisse loan, which will mature in three years, to buy back shares.
Valco May Offer $648 Million to Gain Stake in Bumi
Valco Corp. said it may offer as muchas $648 million to buy Odickson Finance SA, an investment company that provided loans backed by shares of PT Bumi Resources, Asia
biggest exporter of coal used by power stations.
Odickson in April provided $1.1 billion of loans to Bumi Jakarta-based parent, PT Bakrie & Brothers. Bakrie pledged stock as collateral for the loans, including 4.1 billion shares in
Bumi, equivalent to a 21.2 percent stake.
Valco aims to trump a bid from Northstar Equity Partners, the Indonesian affiliate of U.S. buyout firm TPG, which agreed this month to take over $575 million of debt from Odickson and
form a venture with Bakrie that would gain control of the Bumi shares.
biggest exporter of coal used by power stations.
Odickson in April provided $1.1 billion of loans to Bumi Jakarta-based parent, PT Bakrie & Brothers. Bakrie pledged stock as collateral for the loans, including 4.1 billion shares in
Bumi, equivalent to a 21.2 percent stake.
Valco aims to trump a bid from Northstar Equity Partners, the Indonesian affiliate of U.S. buyout firm TPG, which agreed this month to take over $575 million of debt from Odickson and
form a venture with Bakrie that would gain control of the Bumi shares.
BTN asset securitization potential worth IDR20 trillion
PT Bank Tabungan Negara (BTN) projected the company assets that could be securitized into assets backed securities (KIK-EBA) is worth IDR20 trillion.
Along with the scheme of BTN credit asset securitization, my resource said PT Bank Rakyat Indonesia Tbk (BRI) has been appointed by PT Sarana Multigriya Finansial (SMF) as the custodian bank replacing Standard Chartered Bank. But, Standard Chartered Securities remains its function as the underwriter.
"The appointment opposes against the compliance regulation of II F.14 mutual fund on the ban of custodian and investment manager as the affiliated parties. BRI and Danareksa are owned by the government."
BTN has mandated SMF and Standard Chartered Securities to securitize BTN credit assets. Danareksa Investment Management has authority to manage the collective investment portfolio and sell them to investors.
President Director of SMF Erica Soeroto was not available for comment until 19.30 yesterday as she was on meeting.
The potential assets here are deemed the credit disbursed to the company in the housing loan forms. Asset securitization is expectedly maximized y the opening of the secondary market.
KIK-EBA could serve as one of new investment portfolios in Indonesia in addition to the shares, bonds and mutual funds.
BTN will continue to divest the assets up to IDR500 billion worth at initial step to the market. The following asset divestment will be worth IDR1-2 trillion.
Initial IDR500 billion asset securitization with 10 percent enhancement was on AAA rate as to the Moody's Indonesia.
The company not only through the divestment but also seeks fund from bonds sales or initial public offering (IPO).
BTN targets to rake some IDR1-1.5 trillion funds from bonds and some other IDR1.5-2 trillion proceeds from IPO.
Up to September BTN total asset was worth IDR42.79 trillion. Some of the IDR30.07 trillion is the company credit and the total credit as from January-September 2008 period stood at IDR13.11 trillion.
BTN targets to disburse IDR15 trillion new credits. Meanwhile, the BTN capital adequacy ratio (CAR) up to quarter III/2008 stood at 16.85 percent or decline as from 22.4 percent last year.
Along with the scheme of BTN credit asset securitization, my resource said PT Bank Rakyat Indonesia Tbk (BRI) has been appointed by PT Sarana Multigriya Finansial (SMF) as the custodian bank replacing Standard Chartered Bank. But, Standard Chartered Securities remains its function as the underwriter.
"The appointment opposes against the compliance regulation of II F.14 mutual fund on the ban of custodian and investment manager as the affiliated parties. BRI and Danareksa are owned by the government."
BTN has mandated SMF and Standard Chartered Securities to securitize BTN credit assets. Danareksa Investment Management has authority to manage the collective investment portfolio and sell them to investors.
President Director of SMF Erica Soeroto was not available for comment until 19.30 yesterday as she was on meeting.
The potential assets here are deemed the credit disbursed to the company in the housing loan forms. Asset securitization is expectedly maximized y the opening of the secondary market.
KIK-EBA could serve as one of new investment portfolios in Indonesia in addition to the shares, bonds and mutual funds.
BTN will continue to divest the assets up to IDR500 billion worth at initial step to the market. The following asset divestment will be worth IDR1-2 trillion.
Initial IDR500 billion asset securitization with 10 percent enhancement was on AAA rate as to the Moody's Indonesia.
The company not only through the divestment but also seeks fund from bonds sales or initial public offering (IPO).
BTN targets to rake some IDR1-1.5 trillion funds from bonds and some other IDR1.5-2 trillion proceeds from IPO.
Up to September BTN total asset was worth IDR42.79 trillion. Some of the IDR30.07 trillion is the company credit and the total credit as from January-September 2008 period stood at IDR13.11 trillion.
BTN targets to disburse IDR15 trillion new credits. Meanwhile, the BTN capital adequacy ratio (CAR) up to quarter III/2008 stood at 16.85 percent or decline as from 22.4 percent last year.
Monday, December 22, 2008
PLN bonds climb up to IDR2.2 trillion
The State owned Electricity Company (PLN) increased the bonds as from IDR1.5 trillion into IDR2.2 trillion.
PLN set 14.75 percent coupon for the A series bond with 5 years tenure and 15 percent for the B series with 7 years tenure. Formerly the offered annual coupon was 15.75-16.75 percent for the A series bond and 15.78-16.78 percent for the B series.
The bonds issuance is underwritten by PT Trimegah Securities Tbk, PT Danareksa Sekuritas, and PT Indopremier Securities.
PLN set 14.75 percent coupon for the A series bond with 5 years tenure and 15 percent for the B series with 7 years tenure. Formerly the offered annual coupon was 15.75-16.75 percent for the A series bond and 15.78-16.78 percent for the B series.
The bonds issuance is underwritten by PT Trimegah Securities Tbk, PT Danareksa Sekuritas, and PT Indopremier Securities.
Sunday, December 21, 2008
3 Jamsostek directors replaced
The State Enterprise Ministry replaced three positions of directors boards of the Employees Social Security (Jamsostek). Two of them are filled by personnel out of the corporate.
The three new personnel here include Elvyn G. Masassya as investment director, Djoko Sungkono as general and human resource director, and Karsanto as compliance and risk management director.
The replaced boards of directors include Indrasjwari K.S. Kartakusuma with the former post of investment director, Rahmaniah Hasdiani as the former general and human resource director, and Dewi Hanggraeni as compliance and risk management director.
Meanwhile, the incumbent boards of directors include the President Director Hotbonar Sinaga, Planning, Development and Information Director HD Suyono, Finance Director Myra Soraya Ratnawati Asnar, and Operational and Service Director Ahmad Ansyori.
Elvyn Masassya was formerly the managing director of PT Tuban Petro. She used to be the Corporate Secretary PT Bank Negara Indonesia Tbk, and the Managing Director Bank Permata.
Djoko Sungkono was formerly the member of National Social Security Boards member. Karsanto used to lead the BNI Risk Management Division.
The three new personnel here include Elvyn G. Masassya as investment director, Djoko Sungkono as general and human resource director, and Karsanto as compliance and risk management director.
The replaced boards of directors include Indrasjwari K.S. Kartakusuma with the former post of investment director, Rahmaniah Hasdiani as the former general and human resource director, and Dewi Hanggraeni as compliance and risk management director.
Meanwhile, the incumbent boards of directors include the President Director Hotbonar Sinaga, Planning, Development and Information Director HD Suyono, Finance Director Myra Soraya Ratnawati Asnar, and Operational and Service Director Ahmad Ansyori.
Elvyn Masassya was formerly the managing director of PT Tuban Petro. She used to be the Corporate Secretary PT Bank Negara Indonesia Tbk, and the Managing Director Bank Permata.
Djoko Sungkono was formerly the member of National Social Security Boards member. Karsanto used to lead the BNI Risk Management Division.
Five hopefuls competes for BPUI president director
Five nominated hopefuls underwent fit and proper test to become the president director of PT Bahana Pembinaan Usaha Indonesia (BPUI).
Those nominees include Heri Sunaryadi, Ito Warsito, Hafiz Arief, Hesty Puwanti, and Dwina S. Wijaya.
Former president director of BPUI Boyke Mukijat has been appointed by the government as the president director for the Asset Management Company (PPA) last month.
"No decision yet on who will be the BPUI president director. But the fit and proper test was conducted Wednesday to possibly result in two candidates," he said last week.
State Enterprise Ministry secretary Muhammad Said Didu said the government has held fit and proper test for the BPUI president director.
"I don't remember the participant names. The fit and proper test for BPUI president director was conducted yesterday. Now their names are on the State Enterprise Minister office."
All candidates come from the internal company. Heri Sunaryadi currently is the President Director of Bahana Securities as the BPUI subsidiary company. Ito Warsito and Hafiz Arief are BPUI directors. Dwina is the president director of Bahana TCW Management.
BPUI has four subsidiary companies, namely Bahana Securities-investment banking and securities trading, Bahana TCW Investment Management, Graha Niaga Tata Utama, and Bahana Artha Ventura.
Those nominees include Heri Sunaryadi, Ito Warsito, Hafiz Arief, Hesty Puwanti, and Dwina S. Wijaya.
Former president director of BPUI Boyke Mukijat has been appointed by the government as the president director for the Asset Management Company (PPA) last month.
"No decision yet on who will be the BPUI president director. But the fit and proper test was conducted Wednesday to possibly result in two candidates," he said last week.
State Enterprise Ministry secretary Muhammad Said Didu said the government has held fit and proper test for the BPUI president director.
"I don't remember the participant names. The fit and proper test for BPUI president director was conducted yesterday. Now their names are on the State Enterprise Minister office."
All candidates come from the internal company. Heri Sunaryadi currently is the President Director of Bahana Securities as the BPUI subsidiary company. Ito Warsito and Hafiz Arief are BPUI directors. Dwina is the president director of Bahana TCW Management.
BPUI has four subsidiary companies, namely Bahana Securities-investment banking and securities trading, Bahana TCW Investment Management, Graha Niaga Tata Utama, and Bahana Artha Ventura.
Wednesday, December 17, 2008
Indonesia to Hire Barclays, UBS to Set Up Global Bond Program
Indonesia government plans to hireBarclays Plc and UBS AG to set up a global bond program. Government may sell bonds under the program in a mix of public and private transactions in 2009 with size, currency and tenor to be determined by market conditions.
The government will still make use of bond issuance by expanding investor base. The government even plans to directly sell T-bonds to the central bank (BI) and regional governments.
For 2009, the government fixes budget deficit at IDR51.3 trillion or 1% of GDP. To patch up the deficit, the government will use bond issuance and seek bilateral as well as multilateral standby loans.
The government will still make use of bond issuance by expanding investor base. The government even plans to directly sell T-bonds to the central bank (BI) and regional governments.
For 2009, the government fixes budget deficit at IDR51.3 trillion or 1% of GDP. To patch up the deficit, the government will use bond issuance and seek bilateral as well as multilateral standby loans.
CP Prima, road to default ???
Moody's Investors Service has downgraded to B2 from B1 PT Central Proteinaprima's (CPP) corporate family rating and senior unsecured bond rating. At the same time, PT Moody's Indonesia has downgraded CPP's national scale issuer rating to Baa2.id from A3.id.The ratings are under review for further possible downgrade.
Moreover, the company may breach some of its financial covenants on certain short-term bank loans in its FY08 financials. In the event of this happening, the risk of trigging a cross-default is rising, given its low cash-to-short-term debt coverage -- cash of Rp253 bn and short-termdebt of Rp1,000 bn as of September 2008. The depreciation of rupiah exchange rate made the debt to equity ratio (DER) of CP Prima went beyond the debt covenant which might cause default.
In anticipation, the company will have rights issue to take over the subordination debt of PT Surya Hidup Satwa (SHS) into equity. The soft loan will mature on 1 October 2014.
Three banks with possible violation of debt covenant due to the depreciation of rupiah include PT CIMB Niaga Tbk (CIMB), PT Bank Ekspor Indonesia (BEI), and Hongkong Shanghai Bank of China (HSBC).
The long term contract is the agreement to protect the creditor from default including the falling equity under the tolerable level.
CIMB Niaga disbursed US$10 million loan and IDX provides export working capital credit worth IDR100 billion plus letter of credit (L/C) facility worth US$10 million. Consequently, they impose DER by 3.5 times.
HSBC also provides US$20 million loan facility with the obligation of DER by 2.5 times.
Furthermore, around 50-60% of its revenue from the sale of frozen shrimp comes from US, a market which is likely to shrink over the next 12-18 months in view of the economic downturn.
On the other hand, the ratings continue to reflect the company'swell-established and integrated production facilities and its leadingpositions in the shrimp export market and Indonesia's shrimp / fish feedindustry, with full traceability for its frozen shrimp products.
Moreover, the company may breach some of its financial covenants on certain short-term bank loans in its FY08 financials. In the event of this happening, the risk of trigging a cross-default is rising, given its low cash-to-short-term debt coverage -- cash of Rp253 bn and short-termdebt of Rp1,000 bn as of September 2008. The depreciation of rupiah exchange rate made the debt to equity ratio (DER) of CP Prima went beyond the debt covenant which might cause default.
In anticipation, the company will have rights issue to take over the subordination debt of PT Surya Hidup Satwa (SHS) into equity. The soft loan will mature on 1 October 2014.
Three banks with possible violation of debt covenant due to the depreciation of rupiah include PT CIMB Niaga Tbk (CIMB), PT Bank Ekspor Indonesia (BEI), and Hongkong Shanghai Bank of China (HSBC).
The long term contract is the agreement to protect the creditor from default including the falling equity under the tolerable level.
CIMB Niaga disbursed US$10 million loan and IDX provides export working capital credit worth IDR100 billion plus letter of credit (L/C) facility worth US$10 million. Consequently, they impose DER by 3.5 times.
HSBC also provides US$20 million loan facility with the obligation of DER by 2.5 times.
Furthermore, around 50-60% of its revenue from the sale of frozen shrimp comes from US, a market which is likely to shrink over the next 12-18 months in view of the economic downturn.
On the other hand, the ratings continue to reflect the company'swell-established and integrated production facilities and its leadingpositions in the shrimp export market and Indonesia's shrimp / fish feedindustry, with full traceability for its frozen shrimp products.
Mobile-8, road to default ???
PEFINDO downgraded the rating of PT Mobile 8 Telecom Tbk. (FREN or the Company) to idSD (Selective Default) from idCCC while the rating of the Company’s Bond I/2007 of IDR675 billion is still maintained at idCCC under Creditwatch with Negative Implication.
The downgrade is triggered by the Company’s failure to fulfill the accelerated payment of its US$100 million guaranteed senior notes on December 16, 2008.
For the IDR bonds, the Company paid the coupon due on December 15, 2008. However, the Company is under obligations to accelerate payment on the principal amount of the IDR bonds as there is a cross default clause in the IDR bonds indenture. The ratings will be reduced to Default should the Company fail to do so.
Mobile-8 Telecom and the bonds holders failed make deal on the meeting held in Singapore to discuss on the bonds restructuring. The bonds holders refuted the Mobile-8 proposal to convert the US$100 million corporate debt.
The meeting discussed about the debt restructuring namely to extend the payment period, debt payment value cut down, coupon payment suspension, and partly bonds conversion to shares. In case there is no deal, Mobile-8 could face default.
The downgrade is triggered by the Company’s failure to fulfill the accelerated payment of its US$100 million guaranteed senior notes on December 16, 2008.
For the IDR bonds, the Company paid the coupon due on December 15, 2008. However, the Company is under obligations to accelerate payment on the principal amount of the IDR bonds as there is a cross default clause in the IDR bonds indenture. The ratings will be reduced to Default should the Company fail to do so.
Mobile-8 Telecom and the bonds holders failed make deal on the meeting held in Singapore to discuss on the bonds restructuring. The bonds holders refuted the Mobile-8 proposal to convert the US$100 million corporate debt.
The meeting discussed about the debt restructuring namely to extend the payment period, debt payment value cut down, coupon payment suspension, and partly bonds conversion to shares. In case there is no deal, Mobile-8 could face default.
Tuesday, December 16, 2008
PLN issued IDR5 trillion MTN
The State owned Electricity Company (PLN) issued medium term notes (MTN) worth IDR5 trillion.
Mandiri Sekuritas has been appointed as the arranger and PT Bank Mandiri Tbk as the trustee boards.
The MTN has five year tenures with per semester in ten installments with each worth IDR500 billion within five years.
Formerly, PLN will divest the IDR8 trillion bonds and promissory notes (p-notes) in semester II this year. Based on public expose to the Indonesian Exchange Center Custodian (KSEI), PLN issued the A to J series of MTN PLN 2008 worth totally IDr5 trillion.
Every series has consecutive due date starting from 15 June 2009, 15 December 2009, up to 15 December 2013 in rupiah denomination and floating coupon rate. The bonds here have AA- rating from the Indonesian Rating Company
Mandiri Sekuritas has been appointed as the arranger and PT Bank Mandiri Tbk as the trustee boards.
The MTN has five year tenures with per semester in ten installments with each worth IDR500 billion within five years.
Formerly, PLN will divest the IDR8 trillion bonds and promissory notes (p-notes) in semester II this year. Based on public expose to the Indonesian Exchange Center Custodian (KSEI), PLN issued the A to J series of MTN PLN 2008 worth totally IDr5 trillion.
Every series has consecutive due date starting from 15 June 2009, 15 December 2009, up to 15 December 2013 in rupiah denomination and floating coupon rate. The bonds here have AA- rating from the Indonesian Rating Company
Monday, December 15, 2008
XL paid IDR400 billion debt to Mandiri
PT Excelcomindo Pratama Tbk (XL) planned to pay IDR400 billion debts to PT Bank Mandiri Tbk as the due date in December.
Along with the payment here, XL is seeking some US$200 million with three years tenure in rupiah denomination.
XL signed credit agreement worth IDR4 trillion with Bank Mandiri on December 19, 2008, and financing facility is available until December 18, 2008. The interest rate refers to the Jakarta interbank offered rate (Jibor) plus 1.5 percent margin.
The total loan redeemed by the company up to September this year stood at IDr4 trillion.
Senior Vice President Corporate Finance of XL Johnson Chan said the debt here is financed by the internal cash.
XL last week got US$214 million loan from the Exportkreditnamnden (EKN) Buyer Credit Facility.
Last month XL signed syndicated loan deal worth US$140 million with 3 years tenure from four banks, namely DBS bank Ltd, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF, and Chinatrust Commercial Bank, Ltd.
The lending rate here refers to the Singapore interbank offered rate (Sibor) plus 2-3 percent and PT Bank DBS Indonesia acts as the loan facility agent.
As to Johnson, the remaining loan commitment worth US$186 million will be disbursed March next year.
"We just have to seek rupiah denomination loans worth US$200 million with three years tenure. We hope to get them from local bank."
Along with the payment here, XL is seeking some US$200 million with three years tenure in rupiah denomination.
XL signed credit agreement worth IDR4 trillion with Bank Mandiri on December 19, 2008, and financing facility is available until December 18, 2008. The interest rate refers to the Jakarta interbank offered rate (Jibor) plus 1.5 percent margin.
The total loan redeemed by the company up to September this year stood at IDr4 trillion.
Senior Vice President Corporate Finance of XL Johnson Chan said the debt here is financed by the internal cash.
XL last week got US$214 million loan from the Exportkreditnamnden (EKN) Buyer Credit Facility.
Last month XL signed syndicated loan deal worth US$140 million with 3 years tenure from four banks, namely DBS bank Ltd, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF, and Chinatrust Commercial Bank, Ltd.
The lending rate here refers to the Singapore interbank offered rate (Sibor) plus 2-3 percent and PT Bank DBS Indonesia acts as the loan facility agent.
As to Johnson, the remaining loan commitment worth US$186 million will be disbursed March next year.
"We just have to seek rupiah denomination loans worth US$200 million with three years tenure. We hope to get them from local bank."
Sunday, December 14, 2008
Damiano will increase Polysindo shares to 75%
Damiano Investment BV will increase the shares ownership at PT Polysindo Eka Perkasa Tbk, up through to 75 percent as from 69 percent next year.
But, this corporate action has been waiting for the response from the Asset Management Company (PPA) given that the major bonds holders responded positively to the proposal here.
Corporate Secretary of PPA Renny O. Rorong formerly said the restructuring of Texmaco credit assets including the Polysindo could barely move on further due to the high cost.
"Based on the consultant calculation, it is required some US$300 million." The consultant calculating the Texmaco restructuring scheme is Bahana Securities.
PPA has billing of 28 percent of the guaranteed debt at Polysindo as from the total of US$1 billion debt. Besides, Polysindo also has US$630 million debts without guarantee.
But, this corporate action has been waiting for the response from the Asset Management Company (PPA) given that the major bonds holders responded positively to the proposal here.
Corporate Secretary of PPA Renny O. Rorong formerly said the restructuring of Texmaco credit assets including the Polysindo could barely move on further due to the high cost.
"Based on the consultant calculation, it is required some US$300 million." The consultant calculating the Texmaco restructuring scheme is Bahana Securities.
PPA has billing of 28 percent of the guaranteed debt at Polysindo as from the total of US$1 billion debt. Besides, Polysindo also has US$630 million debts without guarantee.
Wednesday, December 10, 2008
Bumi Resources Borrows $131 Million
PT Bumi Resources, Asia's biggest producer of power-station coal, has signed a loan agreement
worth a total of $131 million. The company will borrow 55 million pounds ($81 million)
and $63 million Canadian dollars ($50 million), it said in a statement today. The debt will mature in 35 months.
worth a total of $131 million. The company will borrow 55 million pounds ($81 million)
and $63 million Canadian dollars ($50 million), it said in a statement today. The debt will mature in 35 months.
BNI Gets $100 Million Wachovia Loan
PT Bank Negara Indonesia Tbk, third-biggest state lender, agreed to a $100 million
loan from Wachovia Corp. that it will use equally for working capital and to expand its trade financing business. The one-year loan will pay interest of 2.4 percentage points
more than the three-month London interbank offered rate (Libor).
The bank has $219 million of loans and bonds outstandingincluding a $100 million loan due to mature next year
loan from Wachovia Corp. that it will use equally for working capital and to expand its trade financing business. The one-year loan will pay interest of 2.4 percentage points
more than the three-month London interbank offered rate (Libor).
The bank has $219 million of loans and bonds outstandingincluding a $100 million loan due to mature next year
Fitch Affirms Bank Rakyat Indonesia's Ratings
Fitch Affirms Bank Rakyat Indonesia's Ratings
Fitch Ratings-Jakarta/Singapore-10 December 2008: Fitch Ratings has today affirmed PT Bank Rakyat Indonesia (Persero) Tbk's (BRI) Long-term foreign currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook, Short-term foreign currency IDR at 'B', National Long-term rating at 'AAA(idn)' with a Stable Outlook, Individual Rating at 'C/D', Support Rating at '3' and Support Rating Floor at 'BB-' (BB minus).
BRI's ratings reflect its strong underlying profitability, its well-reserved and above average asset quality, as well as its largely unchallenged position as a leading bank for micro-lending in Indonesia. The ratings also take into account its majority state-ownership (56.8%) and size (10.3% of system assets).
The bank's underlying profitability measured by pre-tax ROA was still strong but moderated to 4.0% in 9M08 as it raised provisions in response to unfavorable economic conditions. Net interest margin (NIM), according to Fitch calculations, remained stable at 9.6% in 9M08 and was among the best in the industry (2007 average: 6.1%), thanks to strong lending yield on its micro-credits and its ample low-cost demand and savings deposits. Loans grew by 33% in 9M08 (industry: 23%) with growth seen across all major segments - micro, consumer and SME loans remained a core focus accounting for at least 82% of total loans. The exposure to foreign currency lending was low at 7.7% of total loans at end-September 2008.
Loan quality remained good as NPLs declined to 2.9% of gross loans at end-September 2008. While the more difficult operating conditions are likely to slow down loan demand and cause loan quality to deteriorate, the impact should be mitigated by its diverse customer base and well-reserved NPLs, as provisions increased to 198% of NPLs at end-September 2008. Capital ratio remained satisfactory although Tier 1 and Total CAR declined to 12.06% and 13.45%, respectively, at end-September 2008.
BRI is Indonesia's oldest bank, established in 1895 with the widest domestic distribution network. It remains majority-owned by the Indonesian government (56.8% at end-September 2008). It is the third-largest bank by assets in Indonesia in Q308.
Fitch Ratings-Jakarta/Singapore-10 December 2008: Fitch Ratings has today affirmed PT Bank Rakyat Indonesia (Persero) Tbk's (BRI) Long-term foreign currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook, Short-term foreign currency IDR at 'B', National Long-term rating at 'AAA(idn)' with a Stable Outlook, Individual Rating at 'C/D', Support Rating at '3' and Support Rating Floor at 'BB-' (BB minus).
BRI's ratings reflect its strong underlying profitability, its well-reserved and above average asset quality, as well as its largely unchallenged position as a leading bank for micro-lending in Indonesia. The ratings also take into account its majority state-ownership (56.8%) and size (10.3% of system assets).
The bank's underlying profitability measured by pre-tax ROA was still strong but moderated to 4.0% in 9M08 as it raised provisions in response to unfavorable economic conditions. Net interest margin (NIM), according to Fitch calculations, remained stable at 9.6% in 9M08 and was among the best in the industry (2007 average: 6.1%), thanks to strong lending yield on its micro-credits and its ample low-cost demand and savings deposits. Loans grew by 33% in 9M08 (industry: 23%) with growth seen across all major segments - micro, consumer and SME loans remained a core focus accounting for at least 82% of total loans. The exposure to foreign currency lending was low at 7.7% of total loans at end-September 2008.
Loan quality remained good as NPLs declined to 2.9% of gross loans at end-September 2008. While the more difficult operating conditions are likely to slow down loan demand and cause loan quality to deteriorate, the impact should be mitigated by its diverse customer base and well-reserved NPLs, as provisions increased to 198% of NPLs at end-September 2008. Capital ratio remained satisfactory although Tier 1 and Total CAR declined to 12.06% and 13.45%, respectively, at end-September 2008.
BRI is Indonesia's oldest bank, established in 1895 with the widest domestic distribution network. It remains majority-owned by the Indonesian government (56.8% at end-September 2008). It is the third-largest bank by assets in Indonesia in Q308.
Mandiri prepares IDR7 trillion for Semen Gresik
PT Bank Mandiri Tbk readies to finance PT Semen Gresik Tbk up to IDR7 trillion capital expenditure as from the total of US$1.3 billion or IDR15.6 trillion required funds (US$1 equals to IDR12,000).
An executive knowing the scheme said the syndication of Bank Mandiri competed with some other bank syndications including the syndication of Hongkong and Shanghai Bank (HSBC) consisting of Royal Bank of Scotland, BNP Paribas, and Bank DBS.
Semen Gresik has realized the stock buyback of 56.36 million shares in the transaction from October 13 to December 5, 2008.
The stock buyback required some IDR155.79 billion fund.
Corporate secretary of Semen Gresik Sunardi Prionomurti said on 13-28 November 2008, the company bought back a total of 53.33 million shares worth IDR145.81 billion.
"In the 1-5 December 2008 period, the number of bought back shares stood at 3.03 million worth IDR9.97 billion. Thus, the remaining fund for the buyback program stands at IDR844.2 billion."
The company prepares up to IDR1 trillion fund at maximum for the maximum of 20 percent stock buyback of the possessed capitals.
An executive knowing the scheme said the syndication of Bank Mandiri competed with some other bank syndications including the syndication of Hongkong and Shanghai Bank (HSBC) consisting of Royal Bank of Scotland, BNP Paribas, and Bank DBS.
Semen Gresik has realized the stock buyback of 56.36 million shares in the transaction from October 13 to December 5, 2008.
The stock buyback required some IDR155.79 billion fund.
Corporate secretary of Semen Gresik Sunardi Prionomurti said on 13-28 November 2008, the company bought back a total of 53.33 million shares worth IDR145.81 billion.
"In the 1-5 December 2008 period, the number of bought back shares stood at 3.03 million worth IDR9.97 billion. Thus, the remaining fund for the buyback program stands at IDR844.2 billion."
The company prepares up to IDR1 trillion fund at maximum for the maximum of 20 percent stock buyback of the possessed capitals.
Tuesday, December 9, 2008
Bank Century waits for Antaboga legal status
PT Bank Century Tbk claimed to be ready to return the fund for PT Antaboga Delta Sekuritas product in case it has legal responsibility to the case.
But, the company should have not taken any responsibility for returning the fund of the product sales as it did not involve in the non bank product sales.
Since 2006, the company has cut off the cooperation with Antaboga and has no links to the product sales here.
The House of Representative's Commission IX member Dradjad Hari Wibowo said the parliament plans to summon Bank of Indonesia (BI) and the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in response to the alleged fund swap from Bank Century to Antaboga and PT Signature Capital Indonesia.
Dradjad considered BI and Bapepam have obligation to secure the customers.
He said the similar case had happened several times including that of the case with Bank Global so that BI and Bapepam could be considered incompetent to perform their supervisory and regulatory functions.
"BI should have taken rigid measures to the sales of nonbank financial products done by the customers with the higher promising return from deposit. It is impossible that they made the sales without coordination with the top management or bank owner."
Bapepam should have monitored the value development of a product. "Indonesian securities is just a small world. So, it sounds weird when an IDR1.5 trillion product could be barely seen the progress."
However, he admitted the two institutions could not deserve fully the blames given the fact that the customers should have been observant prior to their investment.
But, the company should have not taken any responsibility for returning the fund of the product sales as it did not involve in the non bank product sales.
Since 2006, the company has cut off the cooperation with Antaboga and has no links to the product sales here.
The House of Representative's Commission IX member Dradjad Hari Wibowo said the parliament plans to summon Bank of Indonesia (BI) and the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in response to the alleged fund swap from Bank Century to Antaboga and PT Signature Capital Indonesia.
Dradjad considered BI and Bapepam have obligation to secure the customers.
He said the similar case had happened several times including that of the case with Bank Global so that BI and Bapepam could be considered incompetent to perform their supervisory and regulatory functions.
"BI should have taken rigid measures to the sales of nonbank financial products done by the customers with the higher promising return from deposit. It is impossible that they made the sales without coordination with the top management or bank owner."
Bapepam should have monitored the value development of a product. "Indonesian securities is just a small world. So, it sounds weird when an IDR1.5 trillion product could be barely seen the progress."
However, he admitted the two institutions could not deserve fully the blames given the fact that the customers should have been observant prior to their investment.
PLN negotiating for US$1.3 billion loan
The State owned Electricity Company (PLN) is seeking US$1.3 billion loan from banks in support of the capacity building program into 8,700 megawatt (MW).
To help seek the loan, PLN has appointed HSBC to be the finance consultant. PLN seeks 10 year tenure loans.
Vice President Director of PLN Rudiantara said the required fund here is part of the PLN need funds in the USD denomination standing in total of US$4.5 billion.
He said now the company has been negotiation the rupiah denominated loan worth IDR4.3 trillion with local bank syndication.
"The need for fund in rupiah denomination stands at IDR17.3 trillion and has been covered by IDR13 trillion. We need US$4.5 billion loan in dollar denomination and has been covered US$1.76 billion."
To help seek the loan, PLN has appointed HSBC to be the finance consultant. PLN seeks 10 year tenure loans.
Vice President Director of PLN Rudiantara said the required fund here is part of the PLN need funds in the USD denomination standing in total of US$4.5 billion.
He said now the company has been negotiation the rupiah denominated loan worth IDR4.3 trillion with local bank syndication.
"The need for fund in rupiah denomination stands at IDR17.3 trillion and has been covered by IDR13 trillion. We need US$4.5 billion loan in dollar denomination and has been covered US$1.76 billion."
Thursday, December 4, 2008
Jamsostek bought IDR450 billion PLN bonds
PT Jamsostek targets the bonds issued by the State owned Electricity Company (PLN) worth IDR300-450 billion.
The value here reflects 20-30 percent of the total debt offered by PLN of IDR1.5 trillion. Along with the better market responses, PLN opened chances to augment more bonds issuance.
Vice President Director of PLN Rudiantara admitted for not having received the interest from Jamsostek. But he hailed the Jamsostek scheme.
"We are glad to have market responses. The option to add more bonds issuance is still open but of course it should consider the book building result."
The value here reflects 20-30 percent of the total debt offered by PLN of IDR1.5 trillion. Along with the better market responses, PLN opened chances to augment more bonds issuance.
Vice President Director of PLN Rudiantara admitted for not having received the interest from Jamsostek. But he hailed the Jamsostek scheme.
"We are glad to have market responses. The option to add more bonds issuance is still open but of course it should consider the book building result."
Wednesday, December 3, 2008
PLN sign loan US$261 juta
State electricity company PLN is going to sign loan US$261 million from China. PLN needed to complete the first-batch 10,000 MW power plant project.
Vice President Director PLN Rudiantara said to me that the company will sign the credit.
It requires US$4.4 billion and IDR17.5 trillion to complete the 10,000 MW electricity crash program. PLN has got US$3.4 billion and IDR13.5 trillion in fund commitment, making PLN still 20% in shortage.
PLN has offered bond IDR1,5 trilion with coupon ranging from 15.75-16.78 percent. In the public expose yesterday the PLN A series bonds interest with five year tenure equals with the government bonds (SUN) coupon of the FR20 series plus 50-150 basis points.
For the B series with seven years tenure, it is equal to the SUN of FR 27+ FR 28 series divided by two and plus 50-150 basis points.
Vice President Director PLN Rudiantara said to me that the company will sign the credit.
It requires US$4.4 billion and IDR17.5 trillion to complete the 10,000 MW electricity crash program. PLN has got US$3.4 billion and IDR13.5 trillion in fund commitment, making PLN still 20% in shortage.
PLN has offered bond IDR1,5 trilion with coupon ranging from 15.75-16.78 percent. In the public expose yesterday the PLN A series bonds interest with five year tenure equals with the government bonds (SUN) coupon of the FR20 series plus 50-150 basis points.
For the B series with seven years tenure, it is equal to the SUN of FR 27+ FR 28 series divided by two and plus 50-150 basis points.
Mobile-8 Default ??
Moody's Investors Service has downgraded to Ca from Caa2 PT Mobile-8 Telecom Tbk's ("Mobile-8") corporate family rating and the senior unsecured rating on the US$100 million 11.25%notes due 2013 issued by Mobile-8 Telecom Finance Company B.V.. The outlook on the ratings is negative.
The ratings downgrade follows the company's announcement that the holders of the US$ notes have rejected a proposed debt restructuring, and requested accelerated repayments on the US$100 million principal and unpaid interest no later than 14 business days after 26 November 2008.
The request for accelerated repayments follows the company's failure to launch a tender offer to redeem the US$ notes within 30 days of the Change of Control event, therefore triggering an event of default under the notes indenture. "The downgrade to Ca reflects the fact that Mobile-8's current liquidity sources are not sufficient to cover early repayment of the notes and therefore a default on the notes after the grace period looks unavoidable" says Ivan Palacios, a Moody's AVP/Analyst. "Furthermore, a default on the company's US$ notes could trigger a cross-default on its Rupiah senior secured notes, at the option of the bondholders."
The ratings downgrade follows the company's announcement that the holders of the US$ notes have rejected a proposed debt restructuring, and requested accelerated repayments on the US$100 million principal and unpaid interest no later than 14 business days after 26 November 2008.
The request for accelerated repayments follows the company's failure to launch a tender offer to redeem the US$ notes within 30 days of the Change of Control event, therefore triggering an event of default under the notes indenture. "The downgrade to Ca reflects the fact that Mobile-8's current liquidity sources are not sufficient to cover early repayment of the notes and therefore a default on the notes after the grace period looks unavoidable" says Ivan Palacios, a Moody's AVP/Analyst. "Furthermore, a default on the company's US$ notes could trigger a cross-default on its Rupiah senior secured notes, at the option of the bondholders."
Tuesday, December 2, 2008
Qtel agrees tender offer of IDR7,388
The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) stated that Qatar Telecom Q.S.C. (Qtel) eventually agreed with the par value of IDR7,388 for the tender offer of 24.2 percent of PT Indosat Tbk public shares.
However, Qtel has not informed the timeline of the tender offer due to problems arising from the frequency and spin off Indosat fixed and mobile networks business units.
However, Qtel has not informed the timeline of the tender offer due to problems arising from the frequency and spin off Indosat fixed and mobile networks business units.
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