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Wednesday, January 19, 2011

FIF upsize bond plan to IDR2 trio: Six underwriters selected






BI/bursa
19/1/2011

FIF upsize bond plan to IDR2 trio: Six underwriters selected

JAKARTA: PT Federal International Finance (FIF) finally up-sized its bond issuance plan become IDR2 trillion from previously only IDR1 trio this year, related to funds which needed for their financing business expansion in 2011.

To support the plan, the one of a Group Astra company also have appointed six securities company as their wannabe bond underwriter which planned to be issued on April. FIF also intends to held public expose on March.

The nominal bond issuance plan mount up from firstly IDR1 trio, then had estimated increaseIDR1.5 trio and finally set up for IDR2 trio.

FIF President Director Suhartono said this weekend the company is in a process to appoint underwriter for the XI/2011 bond issuance.

“We are in a process to pick the underwriter, you can check it to our corporate secretary. The underwriter mostly are the same as the previous issuance, the old securities companies," said him to Bisnis, Monday.

Six underwriters selected
FIF Finance General Manager Tjap Tet Fa said the company have selected PT Mandiri Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Securities, PT Kresna Graha Sekurindo Tbk, PT HSBC Securities Indonesia, and PT NISP Sekuritas as their joint lead underwriter.

Kresna Securities, Danareksa Sekuritas, Mandiri Sekuritas, and Indo Premier Securities was also being their previous bond issuance, the X/2010 on first semester amount to IDR1 trio.

“We already pick six underwriter. They join to become joint lead underwriter,” said Tjap Tet Fa.

The issuance fund will be used to support business expansion new financing for (booking) Honda branded motorcycle and electronics tools that targetted above IDR20 trio this year.

With those X/2010 bond, data from Indonesia Central Securities Depository (PT Kustodian Sentral Efek Indonesia/KSEI) showed FIF already have obligation to paid off their matured bond for VII, VIII, and IX series that totalled IDR1.1 trio only on May and April.

The company already reached above IDR17 trio booking last year, and targeted a higher target for IDR20 trio this year.

From the IDR20 trio target, new booking target for new motorcycle set up at 1.5 million unit, or equal to IDR17 trio (assume one motorcycle worth IDR11.5 mio). Last year, the company booked 1.04 mio new motorcycles financing.

The used motorcycle financing that focused on two wheel transportation which only withdrawn by FIF. The rest of the target, or as much as 8%, are came from electronics financing.

FIF Operational Director Hendry Christian Wong said with 1.5 mio unit of new target, the company will pushed their link even until the rural area or country. The effort is related into increased demand for motor vehicle in rural area.

“The direction mostly in rural area, the demand from those society for transportation in that area depends on motorcycle, that makes us should focussed to the motor maka kami akan fokus ke territory,” said Wong.

The company also intends to encourage portion of market share for Honda branded motorcyclethis year become 50%, after last year the portion reach 48% from total financing given for the Japanese brand motorcycle.

Until November 2010, total numbers of FIF branch reach above 121 office and more than 500 integrated service network with over than 2.8 mio costumers.

PT BNI Securities Head of Bond Research Sukartono assessed the government bond (surat utang negara/SUN) market, that affected pricing process for corporate bonds, will still fluctuating in the first quarter of 2011.

Thus, said Sukartono, there are tendency of corporate bond issuers choosing to issue bonds in the II quarter or even II semester with hopes that the SUN market conditions are more definite and clearer than now.

“If they issue on this quarter, they afraid that the coupon will be too big that caused by SUN fluctuation."

He also said there are opportunities that the bond issuer intend to pick a lot of lead underwriter to covered up for the salable of the securities.

PT Pemeringkat Efek Indonesia (Pefindo) already upgraded FIF rating from idAA- level become idAA with stable outlook on last weekend.

“The rating reflected a strong support from its controlling shareholder, a very strong business position in the motorcycle financing business, and favourable profitability,” said Pefindo analyst Hendro Utomo. The rating also apply for outstanding bond and medium term notes (MTN) that already issued.

However, he said, the rating of the company that previously named PT Mitrapusaka Artha Finance, constrained by a tigh competition in the business.

The company was a financing wing from Astra Group on Honda branded motorcycle. Their shareholder of the company per 30 September consists of PT Astra International Tbk 99.99% and PT Arya Kharisma 0.00004%. (Irvin Avriano A.)

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