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Thursday, June 10, 2010

Selamat Sempurna issue bond for raise production

BI / exchange
09/06/2010
Irvin Avriano A.

Selamat Sempurna issue bond for raise production

JAKARTA: PT Selamat Sempurna Tbk, a publicly listed automotive radiators and filters producer company, intends to allocate funds from the bonds II/2010 issuance for raise radiator production capacity and debt restructuring.

Selamat Sempurna Director & Corporate Secretary Ang Andri Pribadi said the amount of bonds to be offered by the company as much as IDR300 billion, planned for three, four, five years tenured. Currently the company is still waiting for pre-effective statement from Bapepam-LK to issue bonds and conduct the bidding process.

"We intend to use the amount of IDR180 billion to restructure debt, IDR60 billion for working capital, and the remaining IDR60 billion for the addition of the radiator machine maker," he told the press yesterday.

Company, he said, plans to add machinery and equipment to increase production of aluminum radiator which is currently have of 1.2 million radiators per year capacity to 1.9 million radiators. According to him, machinery and equipment has been ordered and is expected to effectively operate with increased capacity at the end of the quarter III/2010.

He said the company hoped to increase production and sales figures to meet the company's targets that pegged at 19.94% from IDR1.37 trillion last year to IDR1.64 trillion this year.

Andri stating the company is optimistic it can achieve performance targets and the company can maintain its market share this year, given the market started to switch from copper bras radiators to aluminum.

In addition, he said, the company is also optimistic the company would improve its market share because of the crisis that occurred in the Americas that will make the filter manufacturer and a local radiator production disrupted.

He said it made the company recorded an increase in sales to the continent during 2008-2009.

PT Pemeringkat Efek Indonesia (Pefindo) research, published on April 28th, showed the company has a global market share of 3%. Pefindo also assign ratings on emitters' corporate bonds at idAA- level. Pefindo also set outlook for the ratings in stable level, noted that the ratio of large corporate dividends every year as a limiting factor for those ratings.

Earlier this year, the company distribute a dividend of IDR90 per share or a total value of IDR129.57 billion, or 97.53% of the company net profit booked last year amounting to IDR132.85 billion.

For fiscal year 2008, the company's dividends ratio amounting to 94% and 72% for 2007.

Andri said the issuers are not burdened with a large percentage of the dividend because the company has large cash flows that the company has considered it.

Company, he said, also has another option if the bond issuance that are not absorbed by the market investors. The other option is the existing debt facilities worth IDR107 billion from PT Bank Mandiri Tbk and from the PT Bank Mizuho Indonesia amounted to US$ 10 million.

"At least the issuance of the bonds of IDR200 billion, but the issuer will think again if the requested coupon investors are too high," said PT Nusantara Investindo Sekuritas President Director Andaka Gunawan, acting as underwriters of issuance.

Other bond underwriter is PT Andalan Artha Advisindo Sekuritas (AAA Securities).

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