PT Adhi Karya Tbk may will post substantial loss because dispute the project in Qatar.
The dispute could result in substantial loss to the Company. As of September 2009, total receivable from this project amounted to IDR234.14 billion and IDR40.24 billion cost that has not been billed. AL-Habtoor Engineering LLC, the main contractor for project, has executed the project’s guarantee performance bond of USD7.6 million provided by the Company
PT Pemeringkat lifted the status of Creditwatch with Negative Implication of the rating of Adhi Karya and replaced it with a negative outlook. The action is triggered by the lengthened process of an ongoing dispute in the Company’s Shangri-La project in Qatar.
Pefindo will closely monitor the progress of negotiations between ADHI and AL-Habtoor Engineering LLC. The rating can be downgraded if the result of this negotiation is not favor of the company and affects the overall financial profile.
Meanwhile, the ratings for the company’s bond IV/2007 of IDR375 billion due in July 2012 and its Sukuk Mudharabah I/2007 of IDR125 billion due July 2012 are maintained at idA- and idA-(sy).
Wednesday, September 30, 2009
Adaro picks 3 underwriter
PT Adaro Energy, Indonesia's second-biggest coal producer, hired three banks to underwrite $500 million in bonds maturing in five-years or more.
The three banks helping Adaro sell the bonds are DBS Group Holdings Ltd., UBS AG and Credit Suisse Group AG..
The three banks helping Adaro sell the bonds are DBS Group Holdings Ltd., UBS AG and Credit Suisse Group AG..
Bank Panin cuts bond sale
PT Bank Pan Indonesia cut the sizeof a bond sale from IDR1.5 trillion to 800 billion rupiah.
Bank Panin hired PT Danareksa Sekuritas, PT Bahana Securities, PT Evergreen Capital and PT Indopremier Securities to help the company sell IDR1.5 trillion of five-year bonds to finance expansion. Now, the company sell 800 billion rupiah of 11.5 percent notes
Bank Panin hired PT Danareksa Sekuritas, PT Bahana Securities, PT Evergreen Capital and PT Indopremier Securities to help the company sell IDR1.5 trillion of five-year bonds to finance expansion. Now, the company sell 800 billion rupiah of 11.5 percent notes
Lukman Tirtaguna is named a Delta Dunia Director
PT Delta Dunia Makmur, an Indonesian property company, named Northstar's Lukman Tirtaguna as a director during a shareholders meeting today.
Rani Sofyan becomes a Delta Dunia Commisioner
Executive Nortstar Pacific, Rani Sofyan become a commisioner PT Delta Dunia Propertindo Tbk. Rani former Analis Mandiri Sekuritas ad Bahana Securities.
Delta Dunia plans to nominate the former IDX president director Erry Firmansyah as the chief commissioner. Commissioner of PT United Tractors Tbk (UT) Hagianto Kumala was said to be proposed by T.P. Rachmat so as to become Delta Dunia president director upon finalizing Buma acquisition.
Today, Delta Dunia change the name become Delta Dunia Makmur
Delta Dunia plans to nominate the former IDX president director Erry Firmansyah as the chief commissioner. Commissioner of PT United Tractors Tbk (UT) Hagianto Kumala was said to be proposed by T.P. Rachmat so as to become Delta Dunia president director upon finalizing Buma acquisition.
Today, Delta Dunia change the name become Delta Dunia Makmur
Tuesday, September 29, 2009
BW Plantation to raise IDR908 billion from IPO
PT BW Plantation, an Indonesian plantation company, plans to raise as much as 908 billion rupiah ($93.4 million) from an initial share sale next month.
The Jakarta-based company plans to sell 1.211 billion shares in an initial public offering in October, pricing the shares from 525 rupiah to 750 rupiah apiece
The company plans to price the share sale Oct. 13 and start offering the securities to investors Oct. 20 to Oct. 21 with a planned listing on the Indonesian Stock Exchange Oct. 27.
The company hired PT BNP Paribas Securities Indonesia and PT Danareksa Sekuritas to help manage the share sale.
The Jakarta-based company plans to sell 1.211 billion shares in an initial public offering in October, pricing the shares from 525 rupiah to 750 rupiah apiece
The company plans to price the share sale Oct. 13 and start offering the securities to investors Oct. 20 to Oct. 21 with a planned listing on the Indonesian Stock Exchange Oct. 27.
The company hired PT BNP Paribas Securities Indonesia and PT Danareksa Sekuritas to help manage the share sale.
Garuda's Debt Restructuring Curbed
The restructuring of publicly listed PT Bank Mandiri's mandatory convertible bond (MCB) loan to PT Garuda Indonesia may be curbed by Central Bank Regulation (PBI) 78/2/2005 on Commercial Bank Asset Quality Assessment.
The central bank is trying to make the conversion benefit both parties. In addition, the central bank asks for a guarantee that the restructuring will be run and not be dragged on for long like before.
BI Regulation 78/2/2005 doesn't regulate the restructuring of written-off MCB debt. In the meantime, Garuda actually has fulfilled the criteria to have restructuring, namely it has good business outlook and finds difficulty in paying its main debt or debt interest
However, Garuda's debt to Bank Mandiri has violated Article 65 clause 2 of the BI regulation requiring equity to be written off a bank's balance if the equity has surpassed more than five years.
Garuda's MCB had been converted to Mandiri-owned equity during 2001-2006. Therefore, if the equity persisted at the moment, it had violated the regulation since five years had already passed.
According to the Financial Sector Policy Committee's (KKSK) restructuring plan in 2001, Garuda's debt to Bank Mandiri was agreed to at US$80 million plus IDR168.4 billion or US$103 million.
The debt would be converted to shares during Garuda's initial public offering, which was scheduled for 2003. However, the IPO has been delayed until now since Garuda had been burdened with liabilities.
Garuda's debt will balloon to IDR3.36 trillion assuming the IPO will be realized in June 2010 as every year Garuda had to bear a required internal rate return (IRR) of 18%. IRR represents accrued interest leading to bigger required return than the main debt.
Garuda plans to pay 5% of its main debt of IDR1.01 trillion to Bank Mandiri or around IDR50 billion before the IPO. The remaining main debt will be converted to a 10.6% stake in Garuda, while an IRR of IDR2.35 trillion will be paid by the government.
The central bank is trying to make the conversion benefit both parties. In addition, the central bank asks for a guarantee that the restructuring will be run and not be dragged on for long like before.
BI Regulation 78/2/2005 doesn't regulate the restructuring of written-off MCB debt. In the meantime, Garuda actually has fulfilled the criteria to have restructuring, namely it has good business outlook and finds difficulty in paying its main debt or debt interest
However, Garuda's debt to Bank Mandiri has violated Article 65 clause 2 of the BI regulation requiring equity to be written off a bank's balance if the equity has surpassed more than five years.
Garuda's MCB had been converted to Mandiri-owned equity during 2001-2006. Therefore, if the equity persisted at the moment, it had violated the regulation since five years had already passed.
According to the Financial Sector Policy Committee's (KKSK) restructuring plan in 2001, Garuda's debt to Bank Mandiri was agreed to at US$80 million plus IDR168.4 billion or US$103 million.
The debt would be converted to shares during Garuda's initial public offering, which was scheduled for 2003. However, the IPO has been delayed until now since Garuda had been burdened with liabilities.
Garuda's debt will balloon to IDR3.36 trillion assuming the IPO will be realized in June 2010 as every year Garuda had to bear a required internal rate return (IRR) of 18%. IRR represents accrued interest leading to bigger required return than the main debt.
Garuda plans to pay 5% of its main debt of IDR1.01 trillion to Bank Mandiri or around IDR50 billion before the IPO. The remaining main debt will be converted to a 10.6% stake in Garuda, while an IRR of IDR2.35 trillion will be paid by the government.
BNI prepare loan $103 Million to Geo Dipa Energi
PT Bank Negara Indonesia Tbk offer loan$103 million to PT Geo Dipa Energi to help finance Geo Dipa' s geothermal power project in Patuha, western Java.
Monday, September 28, 2009
Leyand acquire Nusantara Infrastructure
Leyand International take over PT Nusantara Infrastructure Tbk (META) with a value of transaction IDR565 billion.
Leyand buy shares directly META worth IDR125 billion, the acquisition of shares through a rights issue of IDR34 billion, and the latter amounting to IDR406 billion through the standby buyer.
First step, Leyand buy 7 percent of the total shares META at total price IDR125 billion with amounting to 709 million shares. Second step, through right issue mechanism, Leyand acquire 7 percent shares of Meta through rights issue.
Leyand International will act as standby purchaser (standby buyer) with a maximum acquire portion 9.23 billion shares, takes the proportion of 83.69%.
Leyand buy shares directly META worth IDR125 billion, the acquisition of shares through a rights issue of IDR34 billion, and the latter amounting to IDR406 billion through the standby buyer.
First step, Leyand buy 7 percent of the total shares META at total price IDR125 billion with amounting to 709 million shares. Second step, through right issue mechanism, Leyand acquire 7 percent shares of Meta through rights issue.
Leyand International will act as standby purchaser (standby buyer) with a maximum acquire portion 9.23 billion shares, takes the proportion of 83.69%.
Erry strong candidate for president commisioner Delta Dunia
PT Delta Dunia Property Tbk plans to nominate the former IDX president director Erry Firmansyah as the chief commissioner.
Govt take responsible for Garuda debt
The government is responsible for the remaining debt of PT Garuda Indonesia to PT Bank Mandiri Tbk worth IDR2.26 trillion as from the outstanding debt of Garuda to Mandiri worth US$103 million.
Director of Bank Mandiri Abdul Rahman said following the full payment of debt, Garuda could become the debtor of the bank.
"We are ready to help ease Garuda financing let alone amidst the better finance situation. Even for IPO, we expected to involve Mandiri Sekuritas to help Garuda IPO and we could help stock marketing to public."
Having got approval from BI, Bank Mandiri could have promptly the conversion. Concerning with the divestment strategy of Garuda to public, Abdul has not been sure whether or not it is done jointly with the IPO or sold to secondary market.
In the IPO, Garuda plans to sell 49 percent shares at maximum to market targeting some US$400 million or IDR4 trillion.
Bank Mandiri formerly proposed Garuda MCB oustanding debt worth IDR1.01 trillion plus internal rate of return (IRR) of 18 percent with ad-on rate so that the total debt stands at IDR3.36 trillion with Garuda stock conversion of 28.8 percent.
Director of Bank Mandiri Abdul Rahman said following the full payment of debt, Garuda could become the debtor of the bank.
"We are ready to help ease Garuda financing let alone amidst the better finance situation. Even for IPO, we expected to involve Mandiri Sekuritas to help Garuda IPO and we could help stock marketing to public."
Having got approval from BI, Bank Mandiri could have promptly the conversion. Concerning with the divestment strategy of Garuda to public, Abdul has not been sure whether or not it is done jointly with the IPO or sold to secondary market.
In the IPO, Garuda plans to sell 49 percent shares at maximum to market targeting some US$400 million or IDR4 trillion.
Bank Mandiri formerly proposed Garuda MCB oustanding debt worth IDR1.01 trillion plus internal rate of return (IRR) of 18 percent with ad-on rate so that the total debt stands at IDR3.36 trillion with Garuda stock conversion of 28.8 percent.
Friday, September 25, 2009
Bakrie Capital inject IDR500 billion to Bakrie Life
PT Bakrie Capital inject IDR500 bllion to PT Asuransi Jiwa Bakrie (Bakrie Life). Bakrie Life will use the fund for settlement obligation of investors
The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) considers unreasonable the solution offered by the management of Bakrie Life to return Diamond Investa investors' main investment fund in installments by 1% per month.
The regulator analyzed the case of Bakrie Life's default was a combination of various factors, such as the management's lack of prudence, possible business violation practices, the current economic condition, and improper handling during the crisis.
The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) considers unreasonable the solution offered by the management of Bakrie Life to return Diamond Investa investors' main investment fund in installments by 1% per month.
The regulator analyzed the case of Bakrie Life's default was a combination of various factors, such as the management's lack of prudence, possible business violation practices, the current economic condition, and improper handling during the crisis.
Thursday, September 24, 2009
Two underwriter handle FIF bonds
PT Federal International Finance (FIF) picks two securities company to underwrite medium term notes (MTN) worth IDR500 billion early quarter IV/2009 to disburse new financing to consumers.
BW prepare option allotment
Palm oil plantation company, PT BW Plantations Tbk prepare option over allotment for IPO, maximum 60,55 million shares. BW will issues 1.21 billion shares with nominal price IDR100.
BW issues
PT Mitra Energi Global, offer option over allotment if there is oversubcribed.
BW , is estimated to spend IDR1.2 trillion capital expenditure in the next three years to finance the planting and infrastructure development.
In a research released by PT Danareksa Sekuritas on 29 August, some 13 percent of the capital expenditure will be allotted for palm oil processing expansion.
BW, which planned to sell 30 percent shares in the IPO with IDR1 trillion fund target, is estimated to use loan to meet the capital expenditure.
BW issued 897 million new shares and 157.04 million shares owned by PT Surya Cipta Sejahtera.
Who is shareholders of BW? BW Investindo has as much as 50%, Farallon Investment Pte Ltd by 30%, PT Wahana Platinum 5% for Indonesia, PT Cahaya Cipta Global by 5%, PT Mitra Global Energy as much as 5% and PT Surya Cipta Sejahtera as much as 5 %.
BW issues
PT Mitra Energi Global, offer option over allotment if there is oversubcribed.
BW , is estimated to spend IDR1.2 trillion capital expenditure in the next three years to finance the planting and infrastructure development.
In a research released by PT Danareksa Sekuritas on 29 August, some 13 percent of the capital expenditure will be allotted for palm oil processing expansion.
BW, which planned to sell 30 percent shares in the IPO with IDR1 trillion fund target, is estimated to use loan to meet the capital expenditure.
BW issued 897 million new shares and 157.04 million shares owned by PT Surya Cipta Sejahtera.
Who is shareholders of BW? BW Investindo has as much as 50%, Farallon Investment Pte Ltd by 30%, PT Wahana Platinum 5% for Indonesia, PT Cahaya Cipta Global by 5%, PT Mitra Global Energy as much as 5% and PT Surya Cipta Sejahtera as much as 5 %.
SBY names panel to recommend replacements for graft body
Indonesian President Susilo BambangYudhoyono formed a panel to recommend replacements for three leaders of the country's anti-graft body who were suspended after being named suspects in criminal cases
Yudhoyono suspended Antasari Azhar, chief of the CorruptionEradication Commission, or KPK, in May after police named him a suspect in a murder case. On Sept. 21, the president suspended
two of KPK's four deputies, Chandra Hamzah and Bibit Rianto, after they were charged with abusing their powers in issuing travel bans against two people being investigated for corruption.
The five-man panel, which has until Oct. 1 to make its recommendations, comprises Justice Minister Andi Mattalata, Adnan Buyung Nasution and Todung Mulya Lubis, both lawyers,
Taufiequrachman Ruki, a former KPK chief, and Widodo, Security Minister.
Yudhoyono suspended Antasari Azhar, chief of the CorruptionEradication Commission, or KPK, in May after police named him a suspect in a murder case. On Sept. 21, the president suspended
two of KPK's four deputies, Chandra Hamzah and Bibit Rianto, after they were charged with abusing their powers in issuing travel bans against two people being investigated for corruption.
The five-man panel, which has until Oct. 1 to make its recommendations, comprises Justice Minister Andi Mattalata, Adnan Buyung Nasution and Todung Mulya Lubis, both lawyers,
Taufiequrachman Ruki, a former KPK chief, and Widodo, Security Minister.
Wednesday, September 23, 2009
Finally, CIC enter Bumi
PT Bumi Resources Tbk announced that China Investment Corporation (CIC) has
invested US$1.9 billion in Bumi in the form of a debt-like instrument. The US$1.9 billion investment consists of US$600 million repayable in year 4, US$600 million in year 5, and remaining US$700 million in year 6. The investment attracts a 12% annual cash coupon with a total IRR of 19%, the balance payable at the time of final maturities. The funds will be used for debt restructuring and capital expenditure.
“We are honored by this historic and transformational investment by CIC, the leading sovereign fund in the world. The investment will enable Bumi to implement its growth strategies quickly and provide a stable capital structure. More importantly, the partnership creates the platform for CIC and Bumi to pursue investment opportunities jointly”, remarked Ari Hudaya, President Director and CEO of Bumi, today.
CIC, wholly-owned by the People’s Republic of China, is one of the largest and reputable investment institutions in the world. Bumi is Indonesia's largest producer and one of the world’s largest exporter of thermal coal with strong practices in community development, corporate social responsibility and corporate governance.
PT Samuel Sekuritas Indonesia acted as arranger and financial advisor, and Jones Day acted as legal advisor to Bumi. Deutsche Bank and China International Capital Corporation (CICC) acted as financial advisors and Davis Polk & Wardwell acted as legal advisor to CIC in this transaction.
invested US$1.9 billion in Bumi in the form of a debt-like instrument. The US$1.9 billion investment consists of US$600 million repayable in year 4, US$600 million in year 5, and remaining US$700 million in year 6. The investment attracts a 12% annual cash coupon with a total IRR of 19%, the balance payable at the time of final maturities. The funds will be used for debt restructuring and capital expenditure.
“We are honored by this historic and transformational investment by CIC, the leading sovereign fund in the world. The investment will enable Bumi to implement its growth strategies quickly and provide a stable capital structure. More importantly, the partnership creates the platform for CIC and Bumi to pursue investment opportunities jointly”, remarked Ari Hudaya, President Director and CEO of Bumi, today.
CIC, wholly-owned by the People’s Republic of China, is one of the largest and reputable investment institutions in the world. Bumi is Indonesia's largest producer and one of the world’s largest exporter of thermal coal with strong practices in community development, corporate social responsibility and corporate governance.
PT Samuel Sekuritas Indonesia acted as arranger and financial advisor, and Jones Day acted as legal advisor to Bumi. Deutsche Bank and China International Capital Corporation (CICC) acted as financial advisors and Davis Polk & Wardwell acted as legal advisor to CIC in this transaction.
Battle Garuda vs Mandiri
PT Bank Mandiri Tbk said the conversion of mandatory convertible bond (MCB) worth IDR1.01 trillion as the shares of PT Garuda Indonesia will jump sharply into 28.8 percent as of 10.6 percent.
The calculation refers to the MCB conversion worth IDR1.01 trillion plus internal rate or return (IRR) into IDR3.36 trillion.
Based on Bank Mandiri calculation, there are two scenarios of stock conversion. First, Garuda MCB outstanding debt worth IDR1.01 trillion plus IDRR18 percent with flat ratet turned into IDR2.39 trillion so the stock conversion become 22.27 percent.
Second, Garuda MCB outstanding debt of IDR1.01 trillion plus IRR18 percent with floating rate, thus the total obligation becomes IDR3.36 trillion and Garuda stock conversion become 28.8 percent.
The calculation of two options here refers to Garuda scheme to have initial public offering (IPO) in 2010.
Asset management director of Bank Mandiri Abdul Rachman said the management currently uses a calculation of Garuda debt worth IDr3.36 trillion as it refers to IRR 18 percent.
“The debt rose triplet as the IRR 18 percent coupon is not paid and thus the interest keeps growing. Based on the main covenant plus the growing interest, as we also pay the customers interest,” he said last week.
However, President Director of Garuda Emirsyah Satar declined the figure.
“The conversion to Garuda shares only stands at 10.6 percent. The interest obligation is not our responsibility,” he said last week.
The MCB credit was formerly deemed the loan for working capital and Bank Mandiri promissory notes to Garuda. In 2001, Garuda restructured its debt including the loan conversion into MCB with five years tenure and coupon of 4 percent.
The settlement of MCB comes from the Garuda IPO scheduled in 2003. MCB Garuda is deemed running well due to the government guarantee to BI for three years.
But, Garuda finance condition worsened so if failed to perform IPO despite the collateral due date of 2004 and not extendable so that MCB is deemed default.
The calculation refers to the MCB conversion worth IDR1.01 trillion plus internal rate or return (IRR) into IDR3.36 trillion.
Based on Bank Mandiri calculation, there are two scenarios of stock conversion. First, Garuda MCB outstanding debt worth IDR1.01 trillion plus IDRR18 percent with flat ratet turned into IDR2.39 trillion so the stock conversion become 22.27 percent.
Second, Garuda MCB outstanding debt of IDR1.01 trillion plus IRR18 percent with floating rate, thus the total obligation becomes IDR3.36 trillion and Garuda stock conversion become 28.8 percent.
The calculation of two options here refers to Garuda scheme to have initial public offering (IPO) in 2010.
Asset management director of Bank Mandiri Abdul Rachman said the management currently uses a calculation of Garuda debt worth IDr3.36 trillion as it refers to IRR 18 percent.
“The debt rose triplet as the IRR 18 percent coupon is not paid and thus the interest keeps growing. Based on the main covenant plus the growing interest, as we also pay the customers interest,” he said last week.
However, President Director of Garuda Emirsyah Satar declined the figure.
“The conversion to Garuda shares only stands at 10.6 percent. The interest obligation is not our responsibility,” he said last week.
The MCB credit was formerly deemed the loan for working capital and Bank Mandiri promissory notes to Garuda. In 2001, Garuda restructured its debt including the loan conversion into MCB with five years tenure and coupon of 4 percent.
The settlement of MCB comes from the Garuda IPO scheduled in 2003. MCB Garuda is deemed running well due to the government guarantee to BI for three years.
But, Garuda finance condition worsened so if failed to perform IPO despite the collateral due date of 2004 and not extendable so that MCB is deemed default.
Saturday, September 19, 2009
Bakrie Plantations rating downgraded to 'B
Standard & Poor's Ratings Services last week lowered its long-term corporate credit rating on Indonesia-based plantation company PT Bakrie Sumatera Plantations Tbk. (BSP) to 'B-' from 'B'. The outlook is negative. At the same time, Standard & Poor's lowered the rating on the senior secured bonds due in 2011 to B- from B. These bonds were issued by BSP Finance B.V. and are guaranteed by BSP.
The downgrade reflects our expectation that the liquidity position of BSP's subsidiary, Agri International (CCC+/Negative/--), will become further strained and it is likely to weaken BSP group's credit profile.
"We anticipate that Agri International's funds from operation (FFO) will be low in the next one year due to lower production volume and yield performance. This will pressure its liquidity on the back of its limited cash and heavy debt burden," said Standard & Poor's credit analyst Yasmin Wirjawan.
BSP does not consolidate Agri International in its financial statement accounts because its holding of 51% is through direct and indirect ownership. However, Standard & Poor's takes a consolidated view to include Agri International when analyzing the credit profile of BSP, given its significant asset size, high debt level as well as BSP's offtake commitment and management control.
The rating on BSP reflects the company's aggressive expansion program, weak cash flow measures, and exposure to crude palm oil (CPO) and rubber prices. CPO and rubber prices are cyclical and subject to volatility, resulting in some unpredictability in earnings and cash flows.
These risks are offset by steady demand for CPO, which is likely to continue in the near to medium term and BSP's established track record and management experience in the plantation business.
"The negative rating outlook on BSP reflects our expectation that Agri International's liquidity could erode further due to limited internal cash generation over the next year," Ms. Wirjawan said.
The downgrade reflects our expectation that the liquidity position of BSP's subsidiary, Agri International (CCC+/Negative/--), will become further strained and it is likely to weaken BSP group's credit profile.
"We anticipate that Agri International's funds from operation (FFO) will be low in the next one year due to lower production volume and yield performance. This will pressure its liquidity on the back of its limited cash and heavy debt burden," said Standard & Poor's credit analyst Yasmin Wirjawan.
BSP does not consolidate Agri International in its financial statement accounts because its holding of 51% is through direct and indirect ownership. However, Standard & Poor's takes a consolidated view to include Agri International when analyzing the credit profile of BSP, given its significant asset size, high debt level as well as BSP's offtake commitment and management control.
The rating on BSP reflects the company's aggressive expansion program, weak cash flow measures, and exposure to crude palm oil (CPO) and rubber prices. CPO and rubber prices are cyclical and subject to volatility, resulting in some unpredictability in earnings and cash flows.
These risks are offset by steady demand for CPO, which is likely to continue in the near to medium term and BSP's established track record and management experience in the plantation business.
"The negative rating outlook on BSP reflects our expectation that Agri International's liquidity could erode further due to limited internal cash generation over the next year," Ms. Wirjawan said.
AIA sell 60% shares to Bina Asetanusa & Bina Dana Hahade
American International Assurance Company, Ltd.. (AIA) has agreement to sell 60% shares to PT Bina Asetanusa and PT Bina Dana Hahade.
Bina Bina Asetanusa and Hahade Fund is a joint partner of the AIA, and thats company are affiliated.
Sales of these shares are owned joint venture insurance company AIA. Transactions over 60% shares will be effective if all requirements have been agreed by both parties, which is determined by the Law (UU).
The plan PT Bina Asetanusa and PT Bina Hahade Fund will have a full on shares of insurance companies and took over the operation. Furthermore, AIA group will focus on business development of PT AIA Financial.
Bina Bina Asetanusa and Hahade Fund is a joint partner of the AIA, and thats company are affiliated.
Sales of these shares are owned joint venture insurance company AIA. Transactions over 60% shares will be effective if all requirements have been agreed by both parties, which is determined by the Law (UU).
The plan PT Bina Asetanusa and PT Bina Hahade Fund will have a full on shares of insurance companies and took over the operation. Furthermore, AIA group will focus on business development of PT AIA Financial.
Elnusa Divestment will close
Finally, Consortium Saratoga Capital and Nortstar Pacific will close the acquisition 37.15% shares of PT Elnusa Tbk. Consortium Saratoga and PT Tridaya Esta has agreed appointed PT Recapital Asset Management as manager of the divestment transaction.
Elnusa is an integrated oil and gas services provider. It estimated to control as much as 80 percent of the national market for geological surveying services, including conducting drilling to determine whether the extraction of reserves is feasible. PT Pertamina is Elnusa’s largest shareholder with a 41.1 percent interest..
Elnusa is an integrated oil and gas services provider. It estimated to control as much as 80 percent of the national market for geological surveying services, including conducting drilling to determine whether the extraction of reserves is feasible. PT Pertamina is Elnusa’s largest shareholder with a 41.1 percent interest..
Thursday, September 17, 2009
BTPN issue IDR750 billion bonds
PT Bank Tabungan Pensiunan Nasional Tbk finally issue IDR750 billion bonds.
Formerly, the bond targets to rake up IDr500 billion fund with 11.25-12.25 percent coupon for tranche A with 3 years tenure, and 11.75-12.75 percent for tranche B with 5 years tenure.
In the bond issuance process, PT CIMB Securities Indonesia, PT Indo Premier Securities and PT Mandiri Sekuritas received mandate as the underwriters for the issuance.
Formerly, the bond targets to rake up IDr500 billion fund with 11.25-12.25 percent coupon for tranche A with 3 years tenure, and 11.75-12.75 percent for tranche B with 5 years tenure.
In the bond issuance process, PT CIMB Securities Indonesia, PT Indo Premier Securities and PT Mandiri Sekuritas received mandate as the underwriters for the issuance.
Indika amendment terms bond
PT Indika Inti Energy Tbk proposed amenment certain terms in its bond indenture to allow use US$60 million for expand.
A key amendment proposed by the company is to allow the use of USD60m earmarked previously for the purchase of a majority stake in a restricted coal-related subsidiary can also be used now to purchase a majority stake in a coal related company that could be unrestricted.
Fitch Ratings has today said that the bondholder consent solicitation process launched by PT Indika Energy Tbk Indika), if accepted by noteholders of the USD250m notes due 2012 issued by Indo Integrated Energy BV and guaranteed by Indika, does not immediately affect its Issuer Default Rating of 'B' with Positive Outlook and the notes' issue rating of 'B'.
However, the ratings impact of these amendments can be only assessed once there is greater clarity on Indika's future investment plans. Indika had a cash balance (excluding short-term investments and restricted cash) of IDR 2.5 triliun at end June 2009 and intends to continue expanding in the energy sector.
A key amendment proposed by the company is to allow the use of USD60m earmarked previously for the purchase of a majority stake in a restricted coal-related subsidiary can also be used now to purchase a majority stake in a coal related company that could be unrestricted.
Fitch Ratings has today said that the bondholder consent solicitation process launched by PT Indika Energy Tbk Indika), if accepted by noteholders of the USD250m notes due 2012 issued by Indo Integrated Energy BV and guaranteed by Indika, does not immediately affect its Issuer Default Rating of 'B' with Positive Outlook and the notes' issue rating of 'B'.
However, the ratings impact of these amendments can be only assessed once there is greater clarity on Indika's future investment plans. Indika had a cash balance (excluding short-term investments and restricted cash) of IDR 2.5 triliun at end June 2009 and intends to continue expanding in the energy sector.
Wednesday, September 16, 2009
Taisho tender offer Bristol
Bristol-Myers Squibb Co. has reached an agreement to sell its OTC assets in Asia-Pacific,
excluding China and Japan, to Taisho Pharmaceutical Co. for $310 million.
With the asumption, value of transaction in Indonesia US$150 million Taisho must tender offer shares of Bristol Myers at price IDR149.517.
excluding China and Japan, to Taisho Pharmaceutical Co. for $310 million.
With the asumption, value of transaction in Indonesia US$150 million Taisho must tender offer shares of Bristol Myers at price IDR149.517.
Moody's upgrades Indonesia's sovereign ratings to Ba2
Moody's Investors Service has upgraded Indonesia's foreign- and local-currency sovereign debt ratings to Ba2, from Ba3. The outlook is stable.
"The upgrade was prompted by the Indonesian economy's relatively strong resilience to the global recession as well as its healthy medium-termgrowth prospects," says Aninda Mitra, a Moody's Vice President and Sovereign Analyst for Indonesia.
"A pick-up in economic activity to its recent rate of 5.5% is expected in 2010, and Indonesia's overall growth dynamic is better positioned to face medium-term global uncertainties than many of its Ba-rated peers, as well as most regional economies," he adds.
"Indonesia's macro-economic management is also improving, and its appropriate policy stance is expected to persist in the foreseeablefuture," says Mitra, adding, "These developments highlight the growing credibility and predictability of government policies, and are expected to ensure macro-economic stability."
Recently concluded elections will return to power the pro-reformincumbent president. According to the analyst, this result will broadly ensure policy continuity and possibly lead to a deepening of policy and structural reforms.
The upgrade was also prompted by an improving credit profile derived fromIndonesia's ongoing policy prudence, structural reforms, and appropriate debt management. Relatively low budget deficits and strong economic growth have loweredIndonesia's general government debt- and private external debt to lower than its peer medians.
Meanwhile, the government's debt affordability is expected to remain stable."Although Indonesia has faced more market volatility than many of its peers, its declining financial indebtedness and the authorities'pro-active and flexible policies provides fundamental credit support,"says Mitra.
"Nonetheless, the need for a strong foreign currency reserve position coupled with a more developed domestic capital market and institutional investor base are assuming greater significance if sovereign creditworthiness is to further improve," he adds.
Systemic risk from terrorist attacks has been contained by the country'sincreasingly effective political institutions and security apparatus. In addition, potential contingent liabilities associated with the banking and state enterprise sector did not significantly threaten thesovereign's credit fundamentals.
In conjunction with this upgrade of the sovereign rating, Moody's has also upgraded Indonesia's foreign currency country ceiling to Ba1 and foreign currency bank deposit ceiling to Ba3. The outlook on these ceilings is stable. The local currency country ceiling of Baa2 and the government's short-term ratings of not-Prime remain unaffected by these actions. Moody's last rating action on Indonesia was taken on 11 June 2009, at which time the outlook on the Ba3 sovereign ratings was changed topositive.
"The upgrade was prompted by the Indonesian economy's relatively strong resilience to the global recession as well as its healthy medium-termgrowth prospects," says Aninda Mitra, a Moody's Vice President and Sovereign Analyst for Indonesia.
"A pick-up in economic activity to its recent rate of 5.5% is expected in 2010, and Indonesia's overall growth dynamic is better positioned to face medium-term global uncertainties than many of its Ba-rated peers, as well as most regional economies," he adds.
"Indonesia's macro-economic management is also improving, and its appropriate policy stance is expected to persist in the foreseeablefuture," says Mitra, adding, "These developments highlight the growing credibility and predictability of government policies, and are expected to ensure macro-economic stability."
Recently concluded elections will return to power the pro-reformincumbent president. According to the analyst, this result will broadly ensure policy continuity and possibly lead to a deepening of policy and structural reforms.
The upgrade was also prompted by an improving credit profile derived fromIndonesia's ongoing policy prudence, structural reforms, and appropriate debt management. Relatively low budget deficits and strong economic growth have loweredIndonesia's general government debt- and private external debt to lower than its peer medians.
Meanwhile, the government's debt affordability is expected to remain stable."Although Indonesia has faced more market volatility than many of its peers, its declining financial indebtedness and the authorities'pro-active and flexible policies provides fundamental credit support,"says Mitra.
"Nonetheless, the need for a strong foreign currency reserve position coupled with a more developed domestic capital market and institutional investor base are assuming greater significance if sovereign creditworthiness is to further improve," he adds.
Systemic risk from terrorist attacks has been contained by the country'sincreasingly effective political institutions and security apparatus. In addition, potential contingent liabilities associated with the banking and state enterprise sector did not significantly threaten thesovereign's credit fundamentals.
In conjunction with this upgrade of the sovereign rating, Moody's has also upgraded Indonesia's foreign currency country ceiling to Ba1 and foreign currency bank deposit ceiling to Ba3. The outlook on these ceilings is stable. The local currency country ceiling of Baa2 and the government's short-term ratings of not-Prime remain unaffected by these actions. Moody's last rating action on Indonesia was taken on 11 June 2009, at which time the outlook on the Ba3 sovereign ratings was changed topositive.
Tuesday, September 15, 2009
Tjiwi Kimia acquire 60% shares of Sumalindo Hutani
PT Tjiwi Kimia acquires 60% stake in PT Sumalindo Hutani Lestari Jaya, subsidiary of PT Sumalindo Lestari Jaya Tbk.
Director of Sinar Mas Group, Yan Partawijaya told this plan will be realized if it is approved by the Department of Forestry and the general meeting of shareholders Sumalindo Lestari.
"For us, the transaction is not necessarily material. This transaction make us to control Sumalindo subsidiary, Sumalindo Hutani ," he said today.
Sumalindo Hutani, 40% shares owned by Inhutani and 60% by Sumalindo Lestari.
Sinar Mas Group had PT Lontar Papyrus, PT Pindo Deli, PT Univenus, Indah Kiat, and Tjiwi Chemistry.
In a report to the Singapore stock exchange authority, management Samko, the parent company name Sumalindo Lestari excess stock sales value Sumalindo Hutani, following a debt burden with Sumalindo Lestari.
Director of Sinar Mas Group, Yan Partawijaya told this plan will be realized if it is approved by the Department of Forestry and the general meeting of shareholders Sumalindo Lestari.
"For us, the transaction is not necessarily material. This transaction make us to control Sumalindo subsidiary, Sumalindo Hutani ," he said today.
Sumalindo Hutani, 40% shares owned by Inhutani and 60% by Sumalindo Lestari.
Sinar Mas Group had PT Lontar Papyrus, PT Pindo Deli, PT Univenus, Indah Kiat, and Tjiwi Chemistry.
In a report to the Singapore stock exchange authority, management Samko, the parent company name Sumalindo Lestari excess stock sales value Sumalindo Hutani, following a debt burden with Sumalindo Lestari.
PPA try to sell again Texmaco
The State Assets Management Corporation (PPA) decided to reopen the tender on the assets credit of Texmaco Group by repacked the divisions of textile and engineering.
President Director PPA Boyke Mukijat says the company have asked for approval from goverment.
"We don't separate division engineering and textile," he said today
The total debt of engineering division of Texmaco Group is US$1.48 billion, while the debt of textile division is US$833.93 million, and the LC of Texmaco Group is US$87.36 million, so that the total collection of PPA is US$2.98 billion.
President Director PPA Boyke Mukijat says the company have asked for approval from goverment.
"We don't separate division engineering and textile," he said today
The total debt of engineering division of Texmaco Group is US$1.48 billion, while the debt of textile division is US$833.93 million, and the LC of Texmaco Group is US$87.36 million, so that the total collection of PPA is US$2.98 billion.
CIC eyes on Bumi bonds and warrant
China Investment Corporation (CIC) aims to get bonds and warrants totally worth US$1.9 billion or IDR19 trillion issued by PT Bumi Resources Tbk.
Samuel International had major roles in the transaction and deal involving CIC and Bumi. CIC is the Chinese government fund manager. The investment institution established in September 2007 has investment portfolios particularly in stock, bonds, and other alternative assets in the advanced and developing countries bourses.
Samuel International had major roles in the transaction and deal involving CIC and Bumi. CIC is the Chinese government fund manager. The investment institution established in September 2007 has investment portfolios particularly in stock, bonds, and other alternative assets in the advanced and developing countries bourses.
Navin strong candidate Vice President Director Semen Gresik
Navin Sonthalia, former Chief Financial Officer PT Excelcomindo Pratama Tbk became a strong candidate for Vice President Director PT Semen Gresik Tbk.
Rajawali Group mentioned Navin Sonthalia replace Heru D. Adhiningrat who resigned from his position in Semen Gresik for a new position as director of PT Danareksa.
Navin earned a Bachelor of Commerce from St.. Xaviers, Calcutta, India, and had certified as a Chartered Accountant (ACA), Chartered Management Accountant (ACMA, England), Certified Accountant (FCCA, UK), Corporate Treasurer (ACT, England), Cost & Works Accountant, Corporate Secretary and has a bachelor in Information Systems Management.
Rajawali Group mentioned Navin Sonthalia replace Heru D. Adhiningrat who resigned from his position in Semen Gresik for a new position as director of PT Danareksa.
Navin earned a Bachelor of Commerce from St.. Xaviers, Calcutta, India, and had certified as a Chartered Accountant (ACA), Chartered Management Accountant (ACMA, England), Certified Accountant (FCCA, UK), Corporate Treasurer (ACT, England), Cost & Works Accountant, Corporate Secretary and has a bachelor in Information Systems Management.
Monday, September 14, 2009
Who is vice president Semen Gresik ??
Who is new vice president director Semen Gresik ? The new vice president Semen Gresik is from Grup Rajawali and former executive in one big telecommunication company and come from India. Grup Rajawali now controlling 24% shares of Semen Gresik via Blue Valley. Who is he ??
Mandiri takes stern measures Garuda, Suba & Djajanti
PT Bank Mandiri Tbk takes stern measures to settle debt of Garuda Indonesia, Djajanti Group, Suba Indah and Dewata Royal through bilateral communication up through to court.
Director of Special Asset Management of Bank Mandiri Abdul Rachman said it would take rigid measures against the debtors lacking of goodwill upon considering various aspects.
About Garuda, Bank Mandiri still had MCB (mandatory convertible bonds) worth IDR1 trillion, Bank Mandiri has made a series of discussion with State Enterprise Ministry as the shareholder, Bank Indonesia, Finance Minister, and Garuda management.
It reached deal that Bank MAndiri considered to convert MCB into Garuda shares and to sell the conversion here on Garuda IPO with the guarantee of the proceeds worth the outstanding MCB plus the 18 percent internal rate of returns (IRR).
Director of Special Asset Management of Bank Mandiri Abdul Rachman said it would take rigid measures against the debtors lacking of goodwill upon considering various aspects.
About Garuda, Bank Mandiri still had MCB (mandatory convertible bonds) worth IDR1 trillion, Bank Mandiri has made a series of discussion with State Enterprise Ministry as the shareholder, Bank Indonesia, Finance Minister, and Garuda management.
It reached deal that Bank MAndiri considered to convert MCB into Garuda shares and to sell the conversion here on Garuda IPO with the guarantee of the proceeds worth the outstanding MCB plus the 18 percent internal rate of returns (IRR).
Prima Dig issue bonds
Fitch Ratings has today assigned a BB- Long-term foreign currency Issuer Default Rating (IDR) and a AA-(idn) National Long-term rating to Indonesia based coal mining contractor, PT Bukit Makmur Mandiri Utama (BUMA). The Outlook on the ratings is Stable.
At the same time, Fitch has assigned an expected rating of 'BB-' to the proposed senior secured notes to be issued by Prime Dig Pte Ltd, a fully-owned subsidiary of BUMA, and guaranteed by BUMA.
BUMA expects to raise up to US$600 million of debt; the notes offering is one of various options being considered by the company. The final rating is contingent upon receipt of documents conforming to information already received and a review of BUMA's capital structure following the conclusion of the transaction.
BUMA's ratings are supported by its established position as the second-largest coal mining contractor in Indonesia with a market share of 19% and its proven ability to win contracts from new and existing customers, which include some of Indonesia's largest and most profitable coal mining companies. BUMA's bargaining power with its customers appears good, as indicated by the significant rate increases it negotiated in 2008. This is mostly due to the critical nature of its services to its customers and its strong market position.
The company's large contract backlog (over 7x its 2008 revenue based on current volume guidance given by customers) provides good earnings visibility for the next five to seven years. In addition, the industry's growth prospects are good due to the increasing demand for thermal coal from Indonesia and a number of Asian countries.
BUMA's revenues are not directly exposed to the fluctuating coal prices as the bulk of its revenues is linked to the volume of overburden it removes. Some of BUMA's input costs are also volatile, although the largest component - fuel costs - is typically passed through to customers. Also, as most of BUMA's operating revenues and expenses are US$-denominated or linked, it is shielded from exchange rate risks arising from borrowing in US$.
While BUMA's revenues are not directly exposed to coal prices, a sustained downturn in prices may lead to fewer new mines being developed by coalminers, and hence, dimmer growth prospects for BUMA. Mining companies also typically adjust strip ratios in periods of low prices, which lower the amount of overburden removed. Additionally, lower coal prices may weaken the credit quality of BUMA's customers. These factors constrain BUMA's ratings, as does the capital intensity of BUMA's operations. BUMA needs to incur constant capital expenditure to grow its business, although Fitch acknowledges that the capex is scalable.
Of the total debt proceeds, US$240million will be on-lent to BUMA's prospective holding company, PT Delta Dunia Property Tbk (Delta), to repay indebtedness incurred in connection with the acquisition of BUMA and a further US$310million will be used to refinance existing debt of BUMA. This will increase the company's financial leverage (as measured by adjusted debt net of cash to EBITDAR) to over 2.5x in 2009 from 1.75x in 2008. However, Fitch expects BUMA to generate positive free cash flows, allowing it to deleverage beyond 2009. The proposed terms of the USD notes do not allow any cash returns to shareholders until the notes are fully repaid. Notwithstanding the higher indebtedness, Fitch expects BUMA to maintain strong interest coverage, which underpins the Stable Outlook on the ratings.
A negative rating action may arise if the leverage of BUMA or Delta is sustained above 2.5x. In addition, any failure to retain major customers, grow volumes and/or maintain market share could also result in a negative rating action.
BUMA reported revenues of US$693million and EBITDA of US$199 million in 2008. A group of private equity investors is acquiring BUMA via a reverse merger with Delta. BUMA's founder, Johan Lensa, will remain as the President Commissioner of BUMA for at least two years and its key management will also be retained after this transaction.
At the same time, Fitch has assigned an expected rating of 'BB-' to the proposed senior secured notes to be issued by Prime Dig Pte Ltd, a fully-owned subsidiary of BUMA, and guaranteed by BUMA.
BUMA expects to raise up to US$600 million of debt; the notes offering is one of various options being considered by the company. The final rating is contingent upon receipt of documents conforming to information already received and a review of BUMA's capital structure following the conclusion of the transaction.
BUMA's ratings are supported by its established position as the second-largest coal mining contractor in Indonesia with a market share of 19% and its proven ability to win contracts from new and existing customers, which include some of Indonesia's largest and most profitable coal mining companies. BUMA's bargaining power with its customers appears good, as indicated by the significant rate increases it negotiated in 2008. This is mostly due to the critical nature of its services to its customers and its strong market position.
The company's large contract backlog (over 7x its 2008 revenue based on current volume guidance given by customers) provides good earnings visibility for the next five to seven years. In addition, the industry's growth prospects are good due to the increasing demand for thermal coal from Indonesia and a number of Asian countries.
BUMA's revenues are not directly exposed to the fluctuating coal prices as the bulk of its revenues is linked to the volume of overburden it removes. Some of BUMA's input costs are also volatile, although the largest component - fuel costs - is typically passed through to customers. Also, as most of BUMA's operating revenues and expenses are US$-denominated or linked, it is shielded from exchange rate risks arising from borrowing in US$.
While BUMA's revenues are not directly exposed to coal prices, a sustained downturn in prices may lead to fewer new mines being developed by coalminers, and hence, dimmer growth prospects for BUMA. Mining companies also typically adjust strip ratios in periods of low prices, which lower the amount of overburden removed. Additionally, lower coal prices may weaken the credit quality of BUMA's customers. These factors constrain BUMA's ratings, as does the capital intensity of BUMA's operations. BUMA needs to incur constant capital expenditure to grow its business, although Fitch acknowledges that the capex is scalable.
Of the total debt proceeds, US$240million will be on-lent to BUMA's prospective holding company, PT Delta Dunia Property Tbk (Delta), to repay indebtedness incurred in connection with the acquisition of BUMA and a further US$310million will be used to refinance existing debt of BUMA. This will increase the company's financial leverage (as measured by adjusted debt net of cash to EBITDAR) to over 2.5x in 2009 from 1.75x in 2008. However, Fitch expects BUMA to generate positive free cash flows, allowing it to deleverage beyond 2009. The proposed terms of the USD notes do not allow any cash returns to shareholders until the notes are fully repaid. Notwithstanding the higher indebtedness, Fitch expects BUMA to maintain strong interest coverage, which underpins the Stable Outlook on the ratings.
A negative rating action may arise if the leverage of BUMA or Delta is sustained above 2.5x. In addition, any failure to retain major customers, grow volumes and/or maintain market share could also result in a negative rating action.
BUMA reported revenues of US$693million and EBITDA of US$199 million in 2008. A group of private equity investors is acquiring BUMA via a reverse merger with Delta. BUMA's founder, Johan Lensa, will remain as the President Commissioner of BUMA for at least two years and its key management will also be retained after this transaction.
Sunday, September 13, 2009
Net profit Barito grew 202.95%
PT Barito Pacific Tbk in the first half of 2009 recorded net profit IDR383.7 billion, grow 202.95% compared to net loss in the same period in 2008 amounted to IDR372.7 billion.
The company's net profit rise caused by the decrease of cost of sales to IDR5.49 trillion compared to the previous period of IDR8.6 trillion.
Price of polipropelina and polietelina is getting better. In the quarter I-2009 sale price polipropelina average of US$ 948 per metric ton, while the second quarter 2009 rose to US$ 1189 per metric ton.
Meanwhile, the price of the average selling polietelina in the quarter I-2009 of US$ 987 per metric ton, while the second quarter 2009 rose to US$ 1160 per metric ton.
The company's net profit rise caused by the decrease of cost of sales to IDR5.49 trillion compared to the previous period of IDR8.6 trillion.
Price of polipropelina and polietelina is getting better. In the quarter I-2009 sale price polipropelina average of US$ 948 per metric ton, while the second quarter 2009 rose to US$ 1189 per metric ton.
Meanwhile, the price of the average selling polietelina in the quarter I-2009 of US$ 987 per metric ton, while the second quarter 2009 rose to US$ 1160 per metric ton.
Friday, September 11, 2009
Multi Nitrotama picks Indo Premier & Trimegah to handle bonds
PT Multi Nitrotama Kimia, the subsidiary company of PT Ancora Resources Tbk, plans to issue US$35 million bonds.
Multi Nitrotama has appointed PT Indo Premier Securities and PT Trimegah Securities Tbk to become underwriter by end of the year.
Ancora is to have IDR200 billion bank loan as extra funding for the acqusitioin of PT Bormindo Nusantara and capital participation increase at Multi Nitrotama. Multi Nitrotama plans to build plant to increase the production capacity of nitrate ammonium which requires US$49 million fund of which some US$35 millino will be covered by the bond issuance.
Multi Nitrotama has appointed PT Indo Premier Securities and PT Trimegah Securities Tbk to become underwriter by end of the year.
Ancora is to have IDR200 billion bank loan as extra funding for the acqusitioin of PT Bormindo Nusantara and capital participation increase at Multi Nitrotama. Multi Nitrotama plans to build plant to increase the production capacity of nitrate ammonium which requires US$49 million fund of which some US$35 millino will be covered by the bond issuance.
Thursday, September 10, 2009
Macquarie help NTPC to acquire coal mine in Indonesia
NTPC Ltd., Asia' s biggest power utility by value, has hired Macquarie Group Ltd. to evaluate a
proposed coal mine purchase in Indonesia. Macquarie have already started due diligence.
Indian utilities are seeking thermal coal assets overseas to plug a local shortfall as the country almost doubles generation capacity in the five years to March 2012.
proposed coal mine purchase in Indonesia. Macquarie have already started due diligence.
Indian utilities are seeking thermal coal assets overseas to plug a local shortfall as the country almost doubles generation capacity in the five years to March 2012.
CNPC Drops Verenex Bid
PT Medco Energi Internasional, an Indonesian oil company, said there's no change in its commitment to develop an oil field in Libya after China National Petroleum
Corp. dropped a bid to buy Verenex Energy Inc., Medco's partner in the field.
The current events will not affect Medco Energi commitment in lieu to the development of the block, Medco President Director Darmoyo Doyoatmojo said in a statement to the
Indonesian Stock Exchange. The current event has not changed the amount of reserves and the value of such reserves in the field, he said.
Corp. dropped a bid to buy Verenex Energy Inc., Medco's partner in the field.
The current events will not affect Medco Energi commitment in lieu to the development of the block, Medco President Director Darmoyo Doyoatmojo said in a statement to the
Indonesian Stock Exchange. The current event has not changed the amount of reserves and the value of such reserves in the field, he said.
Wednesday, September 9, 2009
Buma to issue US$600 million bonds
Coal mining contractor company, PT Bukit Makmur Mandiri Utama (Buma), plans to issue bonds and loan combination worth totally US$600 million.
Buma, which was established by the Johan Lensa, is deemed the second largest coal contractor in Indonesia with last year market shares of 19.2 percent.
Buma currently is in the process of backdoor listing by being acquired by PT Delta Dunia Property Tbk worth US$550 million. As from the figure, some US$240 million is deemed the acquisition value of Buma and the rest is debt takeover.
Buma, which was established by the Johan Lensa, is deemed the second largest coal contractor in Indonesia with last year market shares of 19.2 percent.
Buma currently is in the process of backdoor listing by being acquired by PT Delta Dunia Property Tbk worth US$550 million. As from the figure, some US$240 million is deemed the acquisition value of Buma and the rest is debt takeover.
Salim Ivomas increase bond until IDR1,5 trillion
PT Salim Ivomas Pratama plans to bolster its bonds issuance value to IDR1.5 trillion from IDR1 trillion to refinance Indofood Agri Resources Ltd's (IndoAgri) shoter-term debt.
This is expressed in the information released by PT Pemeringkat Efek Indonesia (Pefindo), which reveals the business unit of IndoAgri plans to issue bond and operational lease Islamic bond (sukuk ijarah) worth IDR1.25 trillion and IDR250 billion, respectively, in the first semester of 2009.
This is a 50% jump from the previous IDR1 trillion expressed by Chief Executive Officer of IndoAgri Mark Julian Wakeford in July and written in the financial statement as of June 30, 2009, which was not audited by First Pacific Company Limited.
The financial statement exposes Salim Ivomas is processing its 5-year bonds to refinance the short-term debts of IndoAgri, a subsidiary of publicly listed company (Plc) PT Indofood Sukses Makmur.
Pefindo, in the meantime, gives AA-rating with stable outlooks to Salim Ivomas bonds.
Salim Ivomas is one the largest plantations most integrated vertically in Indonesia.
This is expressed in the information released by PT Pemeringkat Efek Indonesia (Pefindo), which reveals the business unit of IndoAgri plans to issue bond and operational lease Islamic bond (sukuk ijarah) worth IDR1.25 trillion and IDR250 billion, respectively, in the first semester of 2009.
This is a 50% jump from the previous IDR1 trillion expressed by Chief Executive Officer of IndoAgri Mark Julian Wakeford in July and written in the financial statement as of June 30, 2009, which was not audited by First Pacific Company Limited.
The financial statement exposes Salim Ivomas is processing its 5-year bonds to refinance the short-term debts of IndoAgri, a subsidiary of publicly listed company (Plc) PT Indofood Sukses Makmur.
Pefindo, in the meantime, gives AA-rating with stable outlooks to Salim Ivomas bonds.
Salim Ivomas is one the largest plantations most integrated vertically in Indonesia.
Wika picks Mandiri Sekuritas
PT Wijaya Karya appointed PT Mandiri Sekuritas to undergo feasibility study for the projects run by the company. The state securities company will do financial analysis of all projects done.
Wika up to August recorded new contract worth IDR7.1 trillion. Along with the contract here, Wika also recorded order book worth IDR14.85 trillion.
Wika up to August recorded new contract worth IDR7.1 trillion. Along with the contract here, Wika also recorded order book worth IDR14.85 trillion.
Tuesday, September 8, 2009
ICBC Indonesia plans to issues subdebt US$25 million
PT Industrial & Commercial Bank Of China (ICBC) Indonesia has plans to issue subdebt US$25 million to boost the capital adequacy ratio (CAR). ICBC is more aggressive to focus on retail and corporation market.
In November 2007, ICBC officially announced its acquisition of Bank Halim and made it into Bank ICBC Indonesia.
ICBC has even committed to become Bank ICBC Indonesia which serves as their business center in Asia Pacific. ICBC provided large amount of capital so as to get the total bank asset returns whose headquarter was formerly located in Surabaya.
The subdebt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The sub debt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
In November 2007, ICBC officially announced its acquisition of Bank Halim and made it into Bank ICBC Indonesia.
ICBC has even committed to become Bank ICBC Indonesia which serves as their business center in Asia Pacific. ICBC provided large amount of capital so as to get the total bank asset returns whose headquarter was formerly located in Surabaya.
The subdebt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The sub debt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
Government issues zero coupon bonds for Jiwasraya
The government plans to issue zero coupon bonds to rescue finance performance of PT Asuransi Jiwasraya by 2010.
Deputy State Enterprise Ministry for bank and other finance service Parikesit Suprapto said the amount of fund injection to Jiwasraya discussion is underway.
"The realization of the funding for Jiwasraya is likely to be done next year."
When asked about the zero coupon bond issuance, he said the State Enterprise Ministry still discusses the option jointly with the Finance Ministry.
The government formerly through State Enterprise Ministry prepared two options to boost up Asuransi Jiwasraya capital by injecting fund or issuing bonds to help survive the corporate capital deficit.
Jiwasraya targets to grow the premium this year up to IDR2.8 trillion or rose 12 percent as from DIR2.5 trillion in 2008 through the contribution of group customers through agency. Jiwasraya keeps expanding tradition products from insurance group and unit linked to support the business expansion this year.
Jiwasraya recorded IDR18 billion unaudited profits last year owing to the efficiency and investment proceeds. The 2008 profit target was actually IDR30 billion but it failed to reach it due to the high rate of claims.
The largest corporate investment composition in 2008 was still on mutual fund product and bonds or 60-70 percent of the total investment values of IDR3 trillion. Now Jiwasraya booked IDR480 billion investment gains.
The government has prepared the formation of insurance holding company and Jiwasraya is designed as the holding company. The government also has stocks at Jasindo, smaller portion at Tugu Pratama, and Asei. The capital rise in Jiwasraya enables the company to become the state insurance holding company.
Deputy State Enterprise Ministry for bank and other finance service Parikesit Suprapto said the amount of fund injection to Jiwasraya discussion is underway.
"The realization of the funding for Jiwasraya is likely to be done next year."
When asked about the zero coupon bond issuance, he said the State Enterprise Ministry still discusses the option jointly with the Finance Ministry.
The government formerly through State Enterprise Ministry prepared two options to boost up Asuransi Jiwasraya capital by injecting fund or issuing bonds to help survive the corporate capital deficit.
Jiwasraya targets to grow the premium this year up to IDR2.8 trillion or rose 12 percent as from DIR2.5 trillion in 2008 through the contribution of group customers through agency. Jiwasraya keeps expanding tradition products from insurance group and unit linked to support the business expansion this year.
Jiwasraya recorded IDR18 billion unaudited profits last year owing to the efficiency and investment proceeds. The 2008 profit target was actually IDR30 billion but it failed to reach it due to the high rate of claims.
The largest corporate investment composition in 2008 was still on mutual fund product and bonds or 60-70 percent of the total investment values of IDR3 trillion. Now Jiwasraya booked IDR480 billion investment gains.
The government has prepared the formation of insurance holding company and Jiwasraya is designed as the holding company. The government also has stocks at Jasindo, smaller portion at Tugu Pratama, and Asei. The capital rise in Jiwasraya enables the company to become the state insurance holding company.
Monday, September 7, 2009
Capital World invest in Bakrieland
Capital World Ltd have interest to buy Bakrieland shares from market. The company also
plans to issue bonds next year as one of the funding options for more than IDR1 trillion infrastructures.
In addition to bond issuance option, the company will seek cooperation with strategic investor through road show to some countries. Some investors expressing their interests include those from Australia, Middle East, and Hong Kong.
plans to issue bonds next year as one of the funding options for more than IDR1 trillion infrastructures.
In addition to bond issuance option, the company will seek cooperation with strategic investor through road show to some countries. Some investors expressing their interests include those from Australia, Middle East, and Hong Kong.
Bahana handle tender offer Aqua
PT Aqua Golden Mississippi Tbk has assigned PT Bahana Securities as the broker for tender offer to become private company.
Aqua management agreed to propose the highest tender offer price or to double the fair price proposed by independent auditor, Truscel Capital.
Aqua management agreed to propose the highest tender offer price or to double the fair price proposed by independent auditor, Truscel Capital.
CIMB & Mandiri Sekuritas handle BTN IPO
PT Bank Tabungan Negara (BTN) eventually appointed the consortium of PT CIMB Securities and PT Mandiri Sekuritas to handle initial public offering (IPO) of 30 percent shares.
Sunday, September 6, 2009
Legal consequences Century
Are the pepole who decided to rescue publicly listed company (Plc) PT Bank Century Tbk, have legal consequences ???
The rescue of Bank Century was decided by KSSK in November 2008. Minister of Finance Sri Mulyani Indrawati was the Chairperson of KSSK, while then BI Governor Boediono served as a committee member. Other members were officials at the Deposit Insurance Institution (LPS).
After the committee agreed to rescue the bank, Bank Century was provided with a bailout fund of IDR2.655 trillion on November 23, 2008. After that, four consecutive capital injections followed, making up a total fund of IDR6.7 trillion.
In the meantime, Minister of Finance Sri Mulyani Indrawati on several occasions explained the rescue of Bank Century was decided based on a recommendation from BI saying the collapse of the bank might pose systemic risks. The rescue was made based on the LPS Law and Government Regulation in Lieu of Law (Perppu) on Financial System Safety Net as its legal umbrellas.
One big question, why BI denied instruction from Vice President Jusuf Kalla to arrest Robert Tantular ?
Last week the Vice President denied that his instruction to National Police Chief General Police Bambang Hendarso Danuri to arrest Robert Tantular, the former President Commissioner of Bank Century, was a form of government intervention.
Poor our country.....
The rescue of Bank Century was decided by KSSK in November 2008. Minister of Finance Sri Mulyani Indrawati was the Chairperson of KSSK, while then BI Governor Boediono served as a committee member. Other members were officials at the Deposit Insurance Institution (LPS).
After the committee agreed to rescue the bank, Bank Century was provided with a bailout fund of IDR2.655 trillion on November 23, 2008. After that, four consecutive capital injections followed, making up a total fund of IDR6.7 trillion.
In the meantime, Minister of Finance Sri Mulyani Indrawati on several occasions explained the rescue of Bank Century was decided based on a recommendation from BI saying the collapse of the bank might pose systemic risks. The rescue was made based on the LPS Law and Government Regulation in Lieu of Law (Perppu) on Financial System Safety Net as its legal umbrellas.
One big question, why BI denied instruction from Vice President Jusuf Kalla to arrest Robert Tantular ?
Last week the Vice President denied that his instruction to National Police Chief General Police Bambang Hendarso Danuri to arrest Robert Tantular, the former President Commissioner of Bank Century, was a form of government intervention.
Poor our country.....
Adaro & Shell invest US$40 million
PT Adaro Energy Tbk IBT through its subsidiary firm, PT Indonesia Bulk Terminal (IBT), plans to build fuel storage facility jointly with PT Shell Indonesia worth US$40 million.
President Director of Adaro Energy Garibaldi Thohir said the agreement of both sides are deemed the efforts to boost up efficiency of coal supply chains.
IBT 100 percent shares indirectly are owned by Adaro Energy and deemed the coal terminal operator in Pulau Laut on the southern islands.
IBT port has the capacity of 12 million tons of coal and accommodates 80,000 DWT (dead weight tonnage) ship.
"IBT has signed fuel facilities agreement with Shell Indonesia in a bid to support the growing traffic in IBT terminal and increase the income of liquid bulk jetty operational activities," he said last week.
The agreement was signed in Jakarta September 1, 2009 by Chia Ah Hoo as President Director of IBT and Darwin Silalahi as President Director and Country Chairperson of Shell Indonesia.
Shell will build fuel storage terminal with minimum capacity of 60,000 tons in fuel tank facility areas of IBT in Pulau Laut, South Kalimantan.
IBT will later build joint facility in the IBT terminal area which could be used by Shell and is allocated for loading and uploading of fuel products from the fuel storage facility to the ship or barge.
Shell will operate the fuel storage facility up to 2022 and then transferred to IBT. Following the transfer, Shell could use the facility to store and handle fuel.
President Director of Adaro Energy Garibaldi Thohir said the agreement of both sides are deemed the efforts to boost up efficiency of coal supply chains.
IBT 100 percent shares indirectly are owned by Adaro Energy and deemed the coal terminal operator in Pulau Laut on the southern islands.
IBT port has the capacity of 12 million tons of coal and accommodates 80,000 DWT (dead weight tonnage) ship.
"IBT has signed fuel facilities agreement with Shell Indonesia in a bid to support the growing traffic in IBT terminal and increase the income of liquid bulk jetty operational activities," he said last week.
The agreement was signed in Jakarta September 1, 2009 by Chia Ah Hoo as President Director of IBT and Darwin Silalahi as President Director and Country Chairperson of Shell Indonesia.
Shell will build fuel storage terminal with minimum capacity of 60,000 tons in fuel tank facility areas of IBT in Pulau Laut, South Kalimantan.
IBT will later build joint facility in the IBT terminal area which could be used by Shell and is allocated for loading and uploading of fuel products from the fuel storage facility to the ship or barge.
Shell will operate the fuel storage facility up to 2022 and then transferred to IBT. Following the transfer, Shell could use the facility to store and handle fuel.
Friday, September 4, 2009
Fitch assign BBB rating to Berlina
Fitch Ratings has today assigned Indonesia's PT Berlina Tbk a national long-term rating of BBB(idn). The Outlook is Stable. The agency has also assigned ratings of BBB(idn) to its existing series B rupiah bonds and Islamic rupiah bond totalling IDR117bn, due on 15 December 2009.
Berlina's rating reflects its experience in Indonesia's plastic packaging industry and improving credit metrics over the last two years. Supported by strong demand growth from major consumer goods companies in Indonesia and China, Berlina's revenue grew by more than 20% during FY07-FY08.
Berlina's financial leverage, as measured by adjusted net debt to EBITDAR, improved to 1.4x in FY08 from a peak of 3.0x in 2006, while its EBITDA/gross interest coverage rose to 3.8x in FY08 from a low of 1.9x in FY06.
The rating is also supported by Berlina's good liquidity position as reflected by its ability to redeem its rupiah bonds at maturity from its cash position of IDR65.5bn at end-June 2009 and a committed undrawn long-term loan facility of IDR117bn from PT Bank CIMB Niaga Tbk. Fitch notes that while Berlina's interest coverage ratio may weaken in the short-term due to higher borrowing costs, it will remain acceptable for its rating category.
The rating is constrained by the company's small scale with EBITDA of IDR71bn in FY08, as well as by the nature of the industry that requires continuous capex programme to boost sales. Berlina plans an aggressive capex programme totalling IDR228bn over 2009-2013. In Fitch's opinion, this expansion plan could weaken the company's credit metrics in the short-to medium-term. However, Fitch acknowledges that some portion of this capex could be deferred if necessary.
The rating is also constrained by Berlina's high customer concentration with Unilever Indonesia and Unilever China accounting for about 54% and 14%, respectively, of its consolidated revenue in the first half of 2009. This risk is partly mitigated by the long-term relationship these companies have with Berlina (since the 1970s), though there is no off-take agreement. Furthermore, the inherent risk of fluctuating raw material prices continues to put pressure on cash flow generation.
The Stable Outlook reflects the agency's expectation that Berlina's operating performance will continue to support its credit profile with an adjusted net debt to EBITDAR leverage ratio below 2x. However, a negative rating action may be taken if the company's financial profile deteriorates to a point that adjusted net debt to EBITDAR ratio exceeds 2x, and/or its EBITDA/gross interest expense falls below 3x on sustainable basis. A positive rating action is not envisaged in the next two years given that the small operations are a factor that cannot be addressed in the short-term.
Established in 1969, Berlina engages in the manufacturing of rigid plastic packaging and toothbrushes mainly for the cosmetic, pharmaceutical, personal care and F&B industries. In the first six months ending June 2009, Berlina recorded revenue of IDR245.7bn and EBITDA of IDR38.2bn.
Berlina's rating reflects its experience in Indonesia's plastic packaging industry and improving credit metrics over the last two years. Supported by strong demand growth from major consumer goods companies in Indonesia and China, Berlina's revenue grew by more than 20% during FY07-FY08.
Berlina's financial leverage, as measured by adjusted net debt to EBITDAR, improved to 1.4x in FY08 from a peak of 3.0x in 2006, while its EBITDA/gross interest coverage rose to 3.8x in FY08 from a low of 1.9x in FY06.
The rating is also supported by Berlina's good liquidity position as reflected by its ability to redeem its rupiah bonds at maturity from its cash position of IDR65.5bn at end-June 2009 and a committed undrawn long-term loan facility of IDR117bn from PT Bank CIMB Niaga Tbk. Fitch notes that while Berlina's interest coverage ratio may weaken in the short-term due to higher borrowing costs, it will remain acceptable for its rating category.
The rating is constrained by the company's small scale with EBITDA of IDR71bn in FY08, as well as by the nature of the industry that requires continuous capex programme to boost sales. Berlina plans an aggressive capex programme totalling IDR228bn over 2009-2013. In Fitch's opinion, this expansion plan could weaken the company's credit metrics in the short-to medium-term. However, Fitch acknowledges that some portion of this capex could be deferred if necessary.
The rating is also constrained by Berlina's high customer concentration with Unilever Indonesia and Unilever China accounting for about 54% and 14%, respectively, of its consolidated revenue in the first half of 2009. This risk is partly mitigated by the long-term relationship these companies have with Berlina (since the 1970s), though there is no off-take agreement. Furthermore, the inherent risk of fluctuating raw material prices continues to put pressure on cash flow generation.
The Stable Outlook reflects the agency's expectation that Berlina's operating performance will continue to support its credit profile with an adjusted net debt to EBITDAR leverage ratio below 2x. However, a negative rating action may be taken if the company's financial profile deteriorates to a point that adjusted net debt to EBITDAR ratio exceeds 2x, and/or its EBITDA/gross interest expense falls below 3x on sustainable basis. A positive rating action is not envisaged in the next two years given that the small operations are a factor that cannot be addressed in the short-term.
Established in 1969, Berlina engages in the manufacturing of rigid plastic packaging and toothbrushes mainly for the cosmetic, pharmaceutical, personal care and F&B industries. In the first six months ending June 2009, Berlina recorded revenue of IDR245.7bn and EBITDA of IDR38.2bn.
Thursday, September 3, 2009
Panin Bank bond offer coupon rate 10,6%-11,6%
PT Bank Pan Indonesia bond is estimated to offer a coupon rate of between 10,6%-11,6% or FR0051 series T-bond coupon rate plus 100-200 basis points.
the five-year bond would be offered from September 30 to October 1, 2009, while the coupon rate will be fixed by September 11, 2009.
the five-year bond would be offered from September 30 to October 1, 2009, while the coupon rate will be fixed by September 11, 2009.
Indofood to Spin Off Noodle Business
PT Indofood Sukses Makmur,Indonesia's biggest instant noodle producer, plans to split its noodle and food seasoning divisions into a separate unit, parent First Pacific Co. said.
Indofood, will transfer assets of the two divisions including employees and machinery to a new unit, PT Indofood CBP Sukses Makmur, First Pacific said in a statement to Hong Kong stock exchange today. First Pacific controls 51 percent shares of Indofood.
Indofood, will transfer assets of the two divisions including employees and machinery to a new unit, PT Indofood CBP Sukses Makmur, First Pacific said in a statement to Hong Kong stock exchange today. First Pacific controls 51 percent shares of Indofood.
Elnusa acquisition transaction not executed yet
Transaction of the 37.67 percent acquisition of PT Elnusa Tbk shares by the Consortium of Saratoga Capital-Northstar Pacific has not been finalized thus far.
The Consortium of Saratoga-Northstar has 8-10 weeks since it became the preffered bidder on June 11.
Director of Bahana Securities Eko Yuliantoro said Saratoga-Northstar has finalized Elnusa acquisition transaction from Tri Daya Esta. Bahana is the financial advisor of TDE for Elnusa stock sales here.
The accomplished transaction here is based on the reached transaction price deal involving the TDE and Saratoga Consortium. But he did not mention the agreed price.
"We will make official announcement in the next few days. Principally, the pricing has reached deal," he said yesterday.
There are two swap options of Elnusa stocks from TDE, that is by swapping the currently repurchased agreement to Saratoga, or by waiting for the maturity of the repo which then be swapped to the seller consortium.
I try to confirm CEO of Saratoga Capital Sandiaga Uno on the Elnusa acquisition finalization and he said the finalization is still underway.
"Just wait for the final transaction," he said by short message service.
Saratoga prepares some US$150 million or DIR1.5 trillion to fiannce the acquisition and expansion of Elnusa in the future.
The Consortium of Saratoga-Northstar has 8-10 weeks since it became the preffered bidder on June 11.
Director of Bahana Securities Eko Yuliantoro said Saratoga-Northstar has finalized Elnusa acquisition transaction from Tri Daya Esta. Bahana is the financial advisor of TDE for Elnusa stock sales here.
The accomplished transaction here is based on the reached transaction price deal involving the TDE and Saratoga Consortium. But he did not mention the agreed price.
"We will make official announcement in the next few days. Principally, the pricing has reached deal," he said yesterday.
There are two swap options of Elnusa stocks from TDE, that is by swapping the currently repurchased agreement to Saratoga, or by waiting for the maturity of the repo which then be swapped to the seller consortium.
I try to confirm CEO of Saratoga Capital Sandiaga Uno on the Elnusa acquisition finalization and he said the finalization is still underway.
"Just wait for the final transaction," he said by short message service.
Saratoga prepares some US$150 million or DIR1.5 trillion to fiannce the acquisition and expansion of Elnusa in the future.
Wednesday, September 2, 2009
Latinusa offer 500 million shares
PT Pelat Timah Nusantara (Latinusa) is scheduled to have initial public offering (IPO) by November with the total of 500 million shares offered.
The company plans to collect some IDR400-500 billion fund from the IPO. The company will use 50-80 percent of the fund to renew the machinery so as to increase the production capacity from 130,000 tons per day into 160,000 tons per day. The remaining IPO fund will be allotted to boost up the corporate working capital.
The company plans to collect some IDR400-500 billion fund from the IPO. The company will use 50-80 percent of the fund to renew the machinery so as to increase the production capacity from 130,000 tons per day into 160,000 tons per day. The remaining IPO fund will be allotted to boost up the corporate working capital.
Mandiri to sell Garuda stocks
PT Bank Mandiri Tbk is surely to sell 10 percent shares of PT Garuda Indonesia through initial public offering (IPO).
Garuda targets to rake up some US$400 million from next year IPO.
Director of Bank Mandiri Abdul Rahman said the corporate debt conversion worth US$100 million to Garuda is proposed to swap into equity.
"We will surely sell the stocks. It could be done along with the IPO of Garuda as Bank Mandiri is not allowed to possess shares. We are talking about the conversion option with the team from the State Enterprise Ministry and Garuda," he said last week.
Garuda targets to tapi IDR22.31 trillion revenue this year or rose 15 percent from last year driven by some cooperation made with some other firms in Indonesia.
Garuda projected to tap IDr3.7 trillion net profit by 2014 with 27.6 million passengers. The net profit in 2008 was IDr669 billion and targeted to mount to IDR3.7 trillion in 2014.
Garuda targets to rake up some US$400 million from next year IPO.
Director of Bank Mandiri Abdul Rahman said the corporate debt conversion worth US$100 million to Garuda is proposed to swap into equity.
"We will surely sell the stocks. It could be done along with the IPO of Garuda as Bank Mandiri is not allowed to possess shares. We are talking about the conversion option with the team from the State Enterprise Ministry and Garuda," he said last week.
Garuda targets to tapi IDR22.31 trillion revenue this year or rose 15 percent from last year driven by some cooperation made with some other firms in Indonesia.
Garuda projected to tap IDr3.7 trillion net profit by 2014 with 27.6 million passengers. The net profit in 2008 was IDr669 billion and targeted to mount to IDR3.7 trillion in 2014.
Bakrie Plantations invest in Liberia
Publicly listed company PT Bakrie Sumatera Plantations is preparing US$10 million to make investments in Liberia through its subsidiary, Bakrie Liberia Plantations BV.
President Director of Bakrie Plantations Ambono Janurianto explained the company was eyeing 200,000 acres of areas in the country with a concession time of 100 years.
"For a start, we will need an investment of US$10 million, which will be used to develop several facilities in planted areas," he told Bisnis this week.
At the moment, he added, the company was negotiating the land acquisition plan with the Liberian government. "The land has been fully owned by the Liberian government and 4,000 acres of the areas have been planted with rubber. In the meantime, 6,000 acres of the areas have been planted with oil palm."
He added once the land acquisition was approved of, the company would spend US$10 million on refinery or other facilities on the area. "We will seek more funds for further investments, so that all areas can be planted and productive."
According to Ambono, the company might seek funds from hybrid capital, bonds, or loans from financial institutions.
President Director of Bakrie Plantations Ambono Janurianto explained the company was eyeing 200,000 acres of areas in the country with a concession time of 100 years.
"For a start, we will need an investment of US$10 million, which will be used to develop several facilities in planted areas," he told Bisnis this week.
At the moment, he added, the company was negotiating the land acquisition plan with the Liberian government. "The land has been fully owned by the Liberian government and 4,000 acres of the areas have been planted with rubber. In the meantime, 6,000 acres of the areas have been planted with oil palm."
He added once the land acquisition was approved of, the company would spend US$10 million on refinery or other facilities on the area. "We will seek more funds for further investments, so that all areas can be planted and productive."
According to Ambono, the company might seek funds from hybrid capital, bonds, or loans from financial institutions.
Chandra Asri eyes US$250 million bonds
PT Chandra Asri Petrochemical Center, producer of integrated petrochemical raw materials, plans to issue US$250 million bonds or Idr2.5 trillion to finance business expansion.
The company has appointed two underwriters, namely DBS Securities and Deutsche Securities.
Based on financial report of PT Barito Pacific Tbk per March 2009, the company under the control of businessman Prajogo Pangestu, possessed 70 percent shares of Chandra Asri and 77.93 percent of PT Tri Polyta Indonesia Tbk. Chandra Asri is the producer of ethylene and propylene and Tri Polyta polypropylene.
Barito acquired Chandra Asri in 2007 worth US$1.05 billion or IDR9.76 trillion.
Bariot financed the acquisition with the fund tapped from the rights issue worth IDR9.16 trillion and Barito debt swap worth IDr697.5 billion to PT Inter Petrindo Inti Citra.
Following the acquisition, Barito by last yearend booked the declining net goodwill cost worth IDr1.56 trillion and the net supply realization value cost worth IDR376.73 billion.
The company acquired assets and obligations of Chandra Asri in October 2007 with goodwill, the spread of the acquired Chandra Asri net assets on the basis of fair price and the acquisition cost worth IDr1.64 trillion.
The company has appointed two underwriters, namely DBS Securities and Deutsche Securities.
Based on financial report of PT Barito Pacific Tbk per March 2009, the company under the control of businessman Prajogo Pangestu, possessed 70 percent shares of Chandra Asri and 77.93 percent of PT Tri Polyta Indonesia Tbk. Chandra Asri is the producer of ethylene and propylene and Tri Polyta polypropylene.
Barito acquired Chandra Asri in 2007 worth US$1.05 billion or IDR9.76 trillion.
Bariot financed the acquisition with the fund tapped from the rights issue worth IDR9.16 trillion and Barito debt swap worth IDr697.5 billion to PT Inter Petrindo Inti Citra.
Following the acquisition, Barito by last yearend booked the declining net goodwill cost worth IDr1.56 trillion and the net supply realization value cost worth IDR376.73 billion.
The company acquired assets and obligations of Chandra Asri in October 2007 with goodwill, the spread of the acquired Chandra Asri net assets on the basis of fair price and the acquisition cost worth IDr1.64 trillion.
Tuesday, September 1, 2009
Mahendra Siregar lead Indonesian Export Credit Agency
Deputy Coordinating Minister for Economic Affairs for International Partnership Mahendra Siregar lead Indonesian Export Multifinance Agency (Lembaga Pembiayaan Ekspor Indonesia).
Indonesia Eximbank is targeted to boost up the assets up to IDR48 trillion as from early position of IDR1.2 trillion in the next five year following the cooepartion with export multifinance company today.
The institution under the Law on LPEI is expected to boost the export contribution to the Indonesian economy growth by 5 percent.
The function of the Indonesian export multifinance institution will be performed by PT Bank Ekspor Indonesia (Persero) and will use Indonesia Eximbank as the brand.
Not only disbursing export, Indonesia Eximbank will also have insurance and consultancy service on export.
Indonesia Eximbank is targeted to boost up the assets up to IDR48 trillion as from early position of IDR1.2 trillion in the next five year following the cooepartion with export multifinance company today.
The institution under the Law on LPEI is expected to boost the export contribution to the Indonesian economy growth by 5 percent.
The function of the Indonesian export multifinance institution will be performed by PT Bank Ekspor Indonesia (Persero) and will use Indonesia Eximbank as the brand.
Not only disbursing export, Indonesia Eximbank will also have insurance and consultancy service on export.
4 Underwriters handle Bank Mandiri subdebt
PT Bank Mandiri Tbk picks 4 underwriter to handle five year subdebt.
Director Bank Mandiri Thomas Arifin says the company hire Bahana Securities, Danareksa Sekuritas, Mandiri Sekuritas and Trimegah Securities to help with sale of five years until ten years notes.
Bank Mandiri Tbk projected the capital adequacy ratio (CAR) will increase 1.4-1.7 percent following the issuance of IDR3 trillion subdebt.
Bank Mandiri Tbk in semester II/2009 plans to disburse IDR9 trillion credit to meet the target growth of 16 percent.
The subdebt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The subdebt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
The sub debt is commonly issued with 10 years tenure with buy option at the fifth year. Would the option be left unrealized, the coupon could rise 10 percent so the bond issuer will have the rights so the effective tenure of the bonds will only be five years.
Director Bank Mandiri Thomas Arifin says the company hire Bahana Securities, Danareksa Sekuritas, Mandiri Sekuritas and Trimegah Securities to help with sale of five years until ten years notes.
Bank Mandiri Tbk projected the capital adequacy ratio (CAR) will increase 1.4-1.7 percent following the issuance of IDR3 trillion subdebt.
Bank Mandiri Tbk in semester II/2009 plans to disburse IDR9 trillion credit to meet the target growth of 16 percent.
The subdebt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The subdebt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
The sub debt is commonly issued with 10 years tenure with buy option at the fifth year. Would the option be left unrealized, the coupon could rise 10 percent so the bond issuer will have the rights so the effective tenure of the bonds will only be five years.
Berau IPO suspended up to early 2010
The initial public offering (IPO) of PT Armadian Tritunggal, the holding company of PT Berau Coal, is certainly suspended into early 2010 as from the target in 2009.
The IPO preparation process is currently ongoing. But he has no idea on the progress. The IPO is projected to exceed US$100 million. Berau IPO is assisted by Bahana Securities, Bank of America-Merrill Lynch, and Deutsche Bank.
Berau Coal owner, Rizal Risjad, the son of tycoon Ibrahim Risjad, is in process of selling up to 90 percent shares to the fifth largest coal producer nationwide worth US$1 billion or IDR10 trillion.
The current shareholders of Berau Coal include Armadian with 51 percent possession, Rognar Holding BV 39 percent, and Sojitz Corporation 10 percent. The owner of 100 percent Armadian shares is PT Risco controlled by Rizal Risjad.
The IPO preparation process is currently ongoing. But he has no idea on the progress. The IPO is projected to exceed US$100 million. Berau IPO is assisted by Bahana Securities, Bank of America-Merrill Lynch, and Deutsche Bank.
Berau Coal owner, Rizal Risjad, the son of tycoon Ibrahim Risjad, is in process of selling up to 90 percent shares to the fifth largest coal producer nationwide worth US$1 billion or IDR10 trillion.
The current shareholders of Berau Coal include Armadian with 51 percent possession, Rognar Holding BV 39 percent, and Sojitz Corporation 10 percent. The owner of 100 percent Armadian shares is PT Risco controlled by Rizal Risjad.
Adaro issue US$500 million bonds
PT Adaro Energy Tbk plans to issue US$500 million bonds or IDR5 trillion this year to cover the financing needs of some projects and expansions.
Besides, Adaro last week issued request for proposal to some banks in search of US$500 million syndicated loans or DIR5 trillion.
An informed executive said Adaro has appointed three overseas investment banks, namely UBS Securities, Credit Suisse, and DBS Vickers Securities as the underwriters of the global bonds.
Besides, Adaro last week issued request for proposal to some banks in search of US$500 million syndicated loans or DIR5 trillion.
An informed executive said Adaro has appointed three overseas investment banks, namely UBS Securities, Credit Suisse, and DBS Vickers Securities as the underwriters of the global bonds.
Bakrie Plantations eyes Domba Mas
PT Bakrie Sumatera Plantations is currently negotiating to acquire CPO and oleochemical companies from Domba Mas (Domas) group for IDR8 billion.
Several executives knowing about the information confided one of the credit assets eyed was an oleochemical plant in Kuala Tanjung, North Sumatra.
"The total value of shares and liabilities acquisition is IDR8 trillion. Bakrie Plantations is negotiating with the creditors of Domba Mas [one of which is PT Bank Mandiri] concerning debt restructuring," one executive told a few days ago.
The total amount of debts of four Domba Emas group companies, one of which is PT Domas Agro Inti Prima owned by a Medan-based entrepreneur Susanto Lim, reaches IDR3.3 trillion consisting of IDR1.3 trillion in core liabilities and IDR2 trillion in interests.
Bank Mandiri plans to put to action two hotel assets of Domba Mas in Kuningan-Jakarta and Hotel Tiara in Medan as well as an oleochemical plant. Domba Mas and Procter & Gamble in 2005 signed a contract on the purchase of alcohol fatty acid products worth over US$1 billion for 10 years. The purchase covers over 200,000 tons of oleochemical per annum, which consist of 160,000 tons of alcohol fatty acid per annum.
When asked for confirmation, Director of Bank Mandiri Abdul Rahman revealed the state lender had resumed the sale of Domba Mas. He didn't deny when Bisnis mentioned Bakrie Plantations as one of the potential buyers. However, Abdul Rahman declined to give details about the names and number of the investors.
"We have resumed the sale of Domba Mas' credit assets. Last year, we nearly secured a deal with an investor interested in buying Domba Mas, but the crisis ruined everything," he said last weekend.
In November 2008, there were three investors interested in buying Domba Emas' assets or becoming new creditors, but the financial crisis ruined the process.
Several executives knowing about the information confided one of the credit assets eyed was an oleochemical plant in Kuala Tanjung, North Sumatra.
"The total value of shares and liabilities acquisition is IDR8 trillion. Bakrie Plantations is negotiating with the creditors of Domba Mas [one of which is PT Bank Mandiri] concerning debt restructuring," one executive told a few days ago.
The total amount of debts of four Domba Emas group companies, one of which is PT Domas Agro Inti Prima owned by a Medan-based entrepreneur Susanto Lim, reaches IDR3.3 trillion consisting of IDR1.3 trillion in core liabilities and IDR2 trillion in interests.
Bank Mandiri plans to put to action two hotel assets of Domba Mas in Kuningan-Jakarta and Hotel Tiara in Medan as well as an oleochemical plant. Domba Mas and Procter & Gamble in 2005 signed a contract on the purchase of alcohol fatty acid products worth over US$1 billion for 10 years. The purchase covers over 200,000 tons of oleochemical per annum, which consist of 160,000 tons of alcohol fatty acid per annum.
When asked for confirmation, Director of Bank Mandiri Abdul Rahman revealed the state lender had resumed the sale of Domba Mas. He didn't deny when Bisnis mentioned Bakrie Plantations as one of the potential buyers. However, Abdul Rahman declined to give details about the names and number of the investors.
"We have resumed the sale of Domba Mas' credit assets. Last year, we nearly secured a deal with an investor interested in buying Domba Mas, but the crisis ruined everything," he said last weekend.
In November 2008, there were three investors interested in buying Domba Emas' assets or becoming new creditors, but the financial crisis ruined the process.
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