Thursday, June 10, 2010

LPEI plans to raise US$250 million loan

Indonesia Eximbank (Lembaga Pembiayaan Ekspor) plans to raise US$250 million loans from nine domestic and overseas banks. At the same time, the company also prepares bond issuance in semester I/2011 worth US$300 million.
The loan here involves Standard Chartered Bank, Sumitomo Mitsui and Bank of Tokyo and this will be signed next week in Singapore. The loan is in US dollar denomination with 2-3 years tenure with an expected top rate of 185 basis points from the Sibor (Singapore Interbank Offered Rate).
The company also processes the loans from the World Bank and the Asean Develop-ment Bank (ADB)which is expected to disburse US$100 million loans each. This year the capitalization will be increased from the government capital injection of IDR2 trillion which is expected to realize in the amended State Budget to cover the funding needs this year.
This year, the company needs IDR6.5 trillion budget to meet the financing expansion target worth IDR16.15 trillion up to yearend, including the budgeting for sustainable expansion.
The company plans to issue US$300 million bonds with an estimated 6-7 percent coupon. But the schedule, value, and bond coupon are still subject to change.
LPEI set the bond yield in semester I/2010 at 7-10 percent. The bond here will consist of four series with the targeted proceeds worth IDR2.5 trillion and might be upsized to IDR3 trillion when there is mounting demand.
The four series here include the A series with 370 days tenure with yield reference to that of the government sovereign bond (SUN) of FR0016 plus 50-125 basis points or 7-7,75 percent. The B series with 3 years tenure refers to SUN FR0019 plus 50-125 bps or 8.57-9.33 percent yield.
The C series with 5 years tenure refers to the SUN FR0027 plus 50-150 basis points or with 8.82-9.80 percent yield. The D series of 7 years tenure refers to SUN FR0028 plus 50-150 basis points or the coupon at 9-10 percent.
The fund tapped from bonds will be allocated to support the financing expansion at export and import market which is targeted at IDR16.15 trillion up to yearend or grow by 74 percent from IDR928 trillion in previous year.

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