Bank Mandiri plans to raise US$480 million loan

PT Bank Mandiri Tbk enlarged foreign currency loans target to US$480 million after managed to scoop US$250 million in the first semester of 2012 which bundled with recapitalization bonds valued at IDR1.8 trillion.

The company is conducting an assessment with several banks to execute foreign currency loans and government bonds sales. The proceeds are expected to be directly channeled into foreign currency loans before 2012 ends.
 

The banks recently signed a foreign currency loan of US$250 million which bundled with recapitalization bonds sales valued at IDR1.8 trillion. Bank Mandiri received the loan from Standard Chartered Bank with 3 years period.

Indonesia Bank Ownership Limit Set to 40%

Indonesia will limit financial institutions’ ownership of banks to 40%, according to regulations signed by central bank Governor Darmin Nasution.

For institutions to exceed the limit they must be publicly listed and fulfill minimum capital obligations appropriate to their risk profile, according to the rules inked by July 13.

Under the rules, an owning bank must have tier-1 capital holdings of more than 6% and be committed to holding the purchased bank for a “certain period of time.” Foreign banks will need recommendations from their local financial authority and a purchased lender will need to sell at least 20% of its shares to the public within five years of the sale.

The new ownership rules for banks in Southeast Asia’s largest economy, which may affect acquisitions including DBS Group Holdings Ltd.’s bid for PT Bank Danamon Indonesia, were expected before the end of the month.

Singapore’s DBS made a IDR66 trillion rupiah bid for PT Bank Danamon Indonesia Tbk on April 2, triggering proposals from Bank Indonesia’s officials to restrict the shareholding of local lenders by other financial institutions. The possible limit led traders to bet that the deal, Southeast Asia’s largest banking takeover, may unravel.

Jasa Marga raise IDR1.73 trillion loan

PT Jasa Marga Tbk through PT Jasamarga Bali Tol raise syndicated loan amount IDR1.73 trillion from six national banks to fund Nusa Dua – Ngurah Rai – Benoa, Bali toll road construction. The loan support

capital capacity to finance these projects were only around 30% of the total investment requirement which reached IDR2.4 trillion.

To support toll road construction along 10 km, 70% of its funding or IDR1.73 trillion were came from syndication loan obtained from six national banks, with 5 years tenor and 10% fixed interest rate during construction.

Three banks with the same loan portion were Bank Mandiri, BRI and BNI which amounted to IDR445 billion each. While BCA IDR200 billion, BTN IDR104 billion, and BPD Bali IDR100 billion. Nusa Dua-Ngurah Rai-Benoa toll road project has been started since March 1 and will last for 14 months until the scheduled its completion on April 25, 2013.

The project implementation was hastened in order to welcome international agenda which will be held in Bali next year, especially the Asia Pacific Summit in October 2013.  Based on the evaluation, the Nusa Dua – Benoa toll road project is considered eligible to receive loan and can help create sustainable positive impact on banking and economic activities in Bali.

Elnusa raise US$25 million loan from BNI

PT Elnusa Tbk raise non-cash loan from PT Bank Negara Indonesia Tbk worth US$25 million. The facility will due in one year and can be extended in accordance with the period of Elnusa’s project. The facility will be used as tender guarantee and to support ongoing projects especially those related to oil and gas cooperation contract contractors (KKKS).

Alam Sutera seeking IDR^00 billion loan

PT Alam Sutera Realty Tbk is seeking IDR600 billion loans to acquire PT Garuda Adhimatra Indonesia, a developer of tourism areas.

The company needs IDR812.65 billion to acquire 90.3% shares from Garuda Adhimatra or totaling to 41,862 shares.  As the first stage, it has paid a down payment of IDR40 billion on 10 May 2012. Furthermore, the company will pay IDR706.95 billion for second stage on 18 July 2012 and IDR65.7 billion for third stage. 
 

Based on the company financial statement as of 31 March 2012, Alam Sutera owned bank debt and bond worth IDR1.83 trillion. Meanwhile, the company's equity noted at IDR3.89 trillion.  With additional debt of IDR600 billion, the company's bank debt and bond will reach IDR2.43 trillion with debt to equity ratio of 0.62 times.

SCTV raise IDR250 billion loan

PT Surya Citra Televisi (SCTV) secured debt of IDR250 billion from PT Elang Mahkota Teknologi Tbk in order to pay off II/2007 bonds worth IDR575 billion.

According to an announcement published by the parent company of SCTV, PT Surya Citra Media Tbk and Elang Mahkota, the loan has 5 year-tenor and burdened by a 3-month time deposit rate of PT Bank Central Asia Tbk (BCA) plus 2.75%.

SCTV and Elang Mahkota are recognized as an affiliated party since 99.99% of shares owned SCTV Surya Citra Media and as much as 79.86% shares of Surya Citra Media are owned by Elang Mahkota.

The loan is claimed to save the company's interest expense since the interest rate of the affiliated loan was equal to 7.5% and it is still under II bonds which will be repaid with coupon rate of 10.95% per year.

Blue Bird raise IDR72.5 billion loan from ANZ

PT Bank ANZ Indonesia provided loan facility worth IDR72.5 billion for PT Lintas Buana Taksi which is part of Blue Bird Group.

CEO of Bank ANZ Indonesia Joseph Abraham said the loan facility which will be used for supporting business expansion of Blue Bird Group with 4 year-tenor

“The loan help them to increase capital expenditure for taxi procurement,” he said

Chief Financial Officer (CFO) Lintas Buana Taksi Kreshna P. Djokosoetono said the loan facility will expand its business scale.

"Blue Bird Group considers ANZ as one of our strategic partners to finance the growth of our business. The facility will also help us to accelerate our business scale," he added.

BCA close remittance unit in Malaysia

PT Bank Central Asia Tbk,  Indonesia's third largest financial services company by market value will close its unit in Malaysia BCA Remittance Sdn Bhd at the end of the month and transferred it to partners per May. The decision was made as the unit is considered to be less profitable. The bank will close 4 BCA Remittance outlets in Malaysia. 

The management calculated, BCA could return investment cost only if open 15 outlets in 8 years. Eight years, is too long for the company to wait for profits.
For the money changer business, the company will cooperate with local companies, however he refused to detail the matter. After the closing on April 30, BCA Remittance will open for the next 11 days until May 11 to provide customers information of their transfer transactions.

BNI proposes dividend 20% from net profit

PT Bank Negara Indonesia Tbk, the country fourth largest lender by assets, proposes dividend 20% from net profit IDR5.81 trilion in 2011. BNI books 42% rise in profit for 2011 hitting IDR5.81 trilion from IDR4.1 trilion in 2010. 

The boost in net profits was attributable, among other factors, to last year’s 13 percent increase in the bank’s interest-based income to IDR13.2 trillion, from IDR11.72 trillion the year before,  An 8 percent increase in fee-based income, from IDR7.06 trillion to IDR7.6 trillion, is another contributor to profit growth.

Total loans disbursed by the bank throughout 2011 were valued at IDR136.36 trillion, an increase of 20 percent from the year before. The company’s assets also grew by 20 percent, to IDR299.06 trillion.

The lender preparing bonds issuance US$500 million-US$1 billion for expand the business. Next month, management of BNI and underwriter plans to road show in Europe, United Tsates of Amerika, and several country in Asia. Morgan Stanley, Credit Suisse, and Deutsche help BNI to sell the notes.

Agus Marto lead selection comittee OJK

Goverment named minister of finance Agus Dermawan Wintarto Martowardojo to lead selection 0f comissioner Financial Services Authority (Otoritas Jasa Keuangan/OJK). There are 9 member in selection comittee include : Governor Bank Indonesia Darmin Nasution, Deputy Governor Halim Alamsyah, The Finance Ministry Director General Taxation Fuad Rahmany, Chairman National Comittee for Good Corporate Governance Mas Ahmad Daniri, Comissioner PT Bank Mandiri Tbk Gunarni Soeworo, Ariyanti, Vice Ministry of State Owned Enterprise Mahmudin Yasin, and Chatib Basri

Transmarga raise IDR1.4 trilion loan

PT Transmarga Jatim Pasuruan, PT Jasa Marga Tbk’s subsidiary, raise IDR1.4 trillion loan commitment from a consortium PT Bank Rakyat Indonesia Tbk, PT Bank Mandiri Tbk, PT Bank Negara Indonesia Tbk, and PT Bank Jatim.

Transmarga Jatim is a joint venture where Jasa Marga manages 52% of the company total share. The remaining shares owned by PT Jatim Marga Utama, and Perusahaan Daerah Jalan Tol Kabupaten Pasuruan who manages Gempol-Pasuruan toll road.

The 34.15 km toll road, which connects Gempol with Grati Pasuruan, is a part of long-term Trans Jawa toll road development plan from Merak to Banyuwangi.

The consortium, led by Bank Rakyat Indonesia, will provide loan funds to Transmarga as much as 70% of the total investment fund that reached IDR2 trillion.

LPS cut guaranted rate

Indonesia's deposit insurance agency cut its maximum guaranted rate on rupiah-denominated deposits to 7 percent from 7.25 percent.

Lembaga Penjamin Simpanan, which guarantees deposits at banks in Indonesia, lowered the maximum guaranteed interest rate on dollar-denominated deposits to 2 percent from 2.75 percent. The change is effective as of Oct. 15.

Charoen Pokphand raise US$250 million loan

PT Charoen Pokphand Indonesia Tbk has sealed US$250 million loan from syndication of 13 banks, used for a debt refinancing, funding its capital expenditure and working capital.

The signing of such memorandum of loan agreement was held yesterday. Those 13 banks include Citi, PT Bank Central Asia Tbk, DBS Bank Ltd/PT Bank DBS Indonesia, PT Bank Mandiri Tbk, and Singapore’s branch, Sumitomo Mitsui Banking Corporation.

Other banks are PT Bank ICBC Indonesia, PT Bank Mizuho Indonesia, PT ANZ Panin Bank, PT Bank Rabobank International Indonesia, Singapore’s branch, PT Bank Commonwealth Chang Hwa Commercial Bank Ltd, Offshore Banking of Mega International Commercial Bank Co Ltd and Labuan’s branch, Cathay United Bank.

The company plans to fund working capital and business expansion up to 2013. The facility is consisting of two loan facilities with US$100 million amortization in both rupiah and US dollar. The facility will due in 5 years. The revolving US$150 million credit facility in both currencies will due in 3 years and has 2 years renewal option. Around US$50 million is channeled for syndication refinancing in 2007 and US$200 million for working capital.

PT KAI seeking IDR7 trilion loan

Indonesia’s state owned railway operator PT Kereta Api Indonesia is seeking for IDR7 trillion of fund, to develop greater Jakarta and Soekarno Hatta airport railways.
President Director of Kereta Api Indonesia (KAI) Ignasius Jonan said it will use IDR5 trillion of the amount to increase the capacity of trains operated in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) from 400,000 passengers per day to 1.5 million.
The remaining IDR2 trillion will be used to finance airport railway project. The project would comprise a 7-kilometer track connecting Tanah Tinggi station in Tangerang and the Soekarno-Hatta international airport. It has already been connected to Manggarai station with a track developed by the Transportation Ministry.
If the new railway completed, the route which will be named the commuter line is going to connect Manggarai station, Sudirman, Tanah Abang, Duri, Grogol, Kalideres, Tanah Tinggi and Soekarno-Hatta Airport.
The government will add another 33-kilometer express line between Manggarai station and the airport, via Angke in West Jakarta and Pluit in North Jakarta.
Beside the airport railway in Jakarta, the company has also set aside IDR200 billion-IDR250 billion from its internal cash to establish airport railway in Kuala Namu, Medan, North Sumatera.

BNI manage US$18 billion fund from Mahakam Block

PT Bank Negara Indonesia Tbk is appointed as trustee and paying agent to manage US$18 billion (IDR162 trillion) raised from the gas sale contract of Mahakam Block which involve in three oil-gas companies.

The state-controlled bank will manage the fund for a 10-year period and its Singapore branch will be the paying agent. State-owned oil company PT Pertamina, Total E&P Indonesie and Inpex Corporation are the three oil-gas companies being the contractors of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) of Mahakam Block.
The agreement on the bank appointment was signed by Pertamina Finance Director M. Afdal Bahaudin, Total E&P Indonesie President Director Elisabeth Proust, Inpex Corporation Indonesia Asset Director Corporation Yutaka Inoue and BNI President Director Gatot M. Suwondo.

Head of Oil and Gas Upstream Operating Agency R. Priyono also attended the signing, which took place on the sideline of a conference and exhibition at Jakarta Conference Hall Wednesday. BNI has received 1% of the transaction amount, a considered good fee from the contractors.

IDB sell stake in Bank Muamalat

Islamic Development Bank (IDB) plans to sell its stock ownership in PT Bank Muamalat Indonesia Tbk to raise some proceeds to fund its business expansion in other countries.

Bank Muamalat is the second largest sharia bank in Indonesia by assets. Also known as the oldest Islamic-based bank in Indonesia, it booked IDR23.65 trillion assets at end of June.

IDB holds 32.82% shares of Bank Muamalat, while Boubyan Bank Kuwait holds 24.94% and Atwill Holdings Limited has 17,95%. The other shareholders have not more than 5%.Those three major shareholders have earlier planned to release their shares for different motives.

IDB’s main motivation is the internal regulation limiting ownership in a sharia bank at 20%. IDB has a new regulation stating that ownership in banks should not exceed 20%. In Muamalat it has 32%, and it will decrease the shares to below 20%

Boubyan Bank’s motive of divestment, in the meantime, to face the influence from the 2008 financial crisis, forcing the bank to limit its business only in Middle East area.

Moreover, Bank Muamalat's divestment plan has to be delayed since there is no price agreement between the shareholders and potential investors, both from Indonesia and abroad.

Bukit Asam raise US$219.78 million loan from BNI

PT Bukit Pembangkit Innovative, an subsidiary of PT Tambang Batubara Bukit Asam Tbk, raise US$219.78 million loan from PT Bank Negara Indonesia Tbk. The loan will allocated to build Banjarsari steam power plant in South Sumatera.

Corporate Secretary of Bukit Asam Achmad Sudarto said the 2x110 megawatts power plant is expected to finish in mid 2014. The project is located in Lahat distric. A China-based company China National Electric Engineering Co. Ltd has been appointed as a contractor of engineering, procurement and construction (EPC) of Banjarsari steam power plant.

Meanwhile, PT Citacontrac, an Indonesia-based company, will develop the transmission network from Banjarsari steam power plant to Lahat main station length of 24 kilometres. Currently, Bukit Asam owns 59.75% of Bukit Pembangkit’s shares.

Kirana raise US$600 million loan

PT Kirana Megatara, subdiary Triputra Group raise US$600 million syndication loan with tenor 3 years from 12 bank. Kirana Megatara is currently Indonesia's largest crumb rubber processor and exporter with 14 processing mills in Sumatra and Kalimantan.

Kirana Megatara picks PT Bank CIMB Niaga Tbk, PT Bank Permata Tbk, HSBC Indonesia, dan Standard Chartered Bank Indonesia as a mandated lead arranger.

The company has option to raise additional loan US$200 million. Kirana plans to use US$500 milion loan for working capital. Kirana also plans to use US$100 million loan for develop and acquisition new factory.

The crediturs are Eximbank Indonesia, ICBC Indonesia, Rabobank Indonesia, OCBC Singapura, OCBC NISP, Bank of Tokyo UFJ, Korea Development Bank, and Bank of China.

Dayamitra raise IDR1 trilion loan

PT Dayamitra Telekomunikasi, a unit of PT Telekomunikasi Indonesia, obtained a 1 trillion rupiah loan from PT Bank Rakyat Indonesia.

The loan will be used for capital expenditure this year, including buying and building telecommunication towers.

Danamon picks Citi, Deutsche, & Danareksa

PT Bank Danamon Indonesia Tbk was announced that the bank intends to raise equity capital by way of a renounceable rights issue. In this regard, the Bank has lodged a rights issue plan with Bapepam-LK and IDX.

Danamon have appointed Citi and Deutsche Bank as standby purchasers and PT Danareksa Sekuritas as arranger.

As of March 31, 2011, Danamon has a capital position with consolidated and stand alone Capital
Adequacy Ratios (CAR) of 14.7% and 12.1%, respectively, which are well above the minimum requirements of 8% set by Bank Indonesia. The rights issue will further strengthen the bank’s capital position

As of March 31, 2011, Danamon was 67.4% owned by Asia Financial (Indonesia) Pte. Ltd. and 32.6% by the public.