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Tuesday, November 24, 2009

Bond coupon of Sarana Multigriya at 8.5%-10.79%


as published in the Bisnis Indonesia daily newspaper
Tuesday, 24/11/2009 00:00 WIB
Bond coupon of Sarana Multigriya at 8.5%-10.79%

JAKARTA: PT Sarana Multigriya Finansial (SMF) offered II/2009 bond coupon worth totally IDR350 billion with 1 and 3 years tenure at the level of 8.5-9 percent and 9.79-10.79 percent. The issuance is potentially to grow up.

Director of PT Bahana Securities Andi Sidharta said the reference used for the one year tenure bonds used SPN and the three year tenure will use FR008 as the reference. Premium offered ranges at 150-250 bps above the reference yield.

He said the offered coupon shows the company remains optimistic the high customers demand as it targets investors with short term horizon.

Andi opens chance to the additional issuance, would the demand and coupon required by the investors be considered lucrative.

"It is unlike other bonds with longer term many issued by end of the year," he briefed the press yesterday. Bahana Securities acts as single underwriter here.

SMF targets bank customers and investment managers which prefer short term tenure investment instrument.

He said there are three major factors leading to the company and emitter optimism with the bond issuance gains. First, the bond rating is at AA level by PT Fitch Ratings Indonesia. As to him, it is rare now for corporate to get that high rating.

Second, the emitter is state owned enterprises fully guaranteed by the government. He cited example when every IPO of bonds or stocks, investors are always interested in the issued investment instrument.

Third, the offered bond coupon is higher than bank and deposit rate commonly at 8 percent with relatively the same tenure.

President Director of SMF Erica Soeroto said the company plans to disburse IDR450 billion financing next year. "But , it still waits for shareholders approval."

Director of SMF Sutomo said the company has sought some investment managers to market mutual funds using assets-backed securities instrument (EBA) issued twice by the company this year.

The derivative securities issuance here stands at IDR502 billion but mostly absorbed by SMF as the standby buyer.

He said retail investor later could enjoy protected mutual fund with EBA basis equity particularly EBA DSMF-BTN 02/2009 the company just issued.

"The coupon is still attractive and it'd better for mutual fund investor."

Up to yearend, the company will have a total assets worth IDR1.95 trillion coming from equity and EBA 01 and 02 worth totally IDR1.3 trillion, I/2009 bond worth IDR300 billion, and II/2009 bond scheme worth IDR350 billion. (Bisnis/21)

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