Moody's: Philippine sovereign rating upgraded to Ba2

BI / financial
15/6/2011
Irvin Avriano A.
Bisnis Indonesia

Moody's: Philippine sovereign rating upgraded to Ba2

JAKARTA: Moody's Investors Service raised their ratings on foreign and local denominated Philippine government bonds level from Ba3 to Ba2. The rating outlook is stable.

"[One of] the key drivers for the decision are the progress made in fiscal consolidation by the new Aquino administration," said Moody's Assistant Vice President-Analyst, Christian de Guzman, in his ratings research this morning.

CIMB, Maybank, Citigroup, and HSBC for Malay US$-sukuk

28/5/2011

Irvin Avriano A.

CIMB, Maybank, Citigroup, and HSBC for Malay US$-sukuk

JAKARTA: International Financing Review Asia (IFR Asia) reported government of Malaysia already pick two local bank and two global bank as their sovereign global/US-dollar-denominated sukuk issuance arranger.

The banks namely CIMB, Maybank, Citigroup, and HSBC. The matter was announced on short and limited news published on May 25th.

SUN foreign investors returns

BI/bursa

24/2/2011

Irvin Avriano A.

Bisnis Indonesia

SUN foreign investors returns

JAKARTA: Foreign investor start to enter the Indonesia goverment bond (surat utang negara/SUN) market again after their ownership boosted to 30.75%, the highest level since January 11th.

Based on Directorat General Debt Management Office MoF data, the foreign ownership reach IDR198.8 trillion on February 18th compared with SUN outstanding IDR646.37 trio.

February SUN transaction predicted same or higher

BI/exchange

10/2/2011

Irvin Avriano A.

Bisnis Indonesia

February SUN transaction predicted same or higher

JAKARTA: The volume of of government bonds (surat utang negara/SUN) transactions which are traded throughout this month predicted will be same or predicted to be larger than IDR144.73 trillion that recorded for January.

The increase is also predicted that the transaction will be coloured by high volatility.

In January, the data of Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia/BEI) showed the volume of securities transactions increased by 56.69%, or become IDR144.73 trio compared to IDR92.36 trio in January last year.

Government bond price rebounded today

BI/bursa

18/1/2011
Irvin Avriano A.

JAKARTA: Government bond price (surat utang negara/SUN) price rebounded today and supress its yield, after debt management office (DMO/Ditjen Pengelolaan Utang) held an auction that absorb IDR6.05 trillion from bid given by bond-market player.

Data issued by Indonesia Bond Pricing Agency (IBPA/PT Penilai Harga Efek Indonesia) today shows the yield for 5 year bond corrected 10 basis points (bps) to 7.5% from previously 7.6%, while yield 10 year bond corrected 15 bps to 8.5%.

Moody's upgraded Indonesia rating to Ba1

BI/bursa

17/1/2011

Irvin Avriano A.

Bisnis Indonesia

Moody's upgraded Indonesia rating to Ba1

JAKARTA: Moody's Investors Service upgraded the rating for Indonesia's sovereign bond and credit rating from Ba2 level to Ba1 level, a very single notch under investment grade. The nation's rating outlook set at stable level.

The other global credit rating company set Indonesia level at BB+ from Fitch Ratings and BB from Standard&Poor's (S&P). Fitch's rating upgraded from BB to BB+ since January last year, while rating from S&P upgraded since last March.

The upgrading action following positive outlook that has been given last December. Aninda Mitra, Moody's VP and lead of sovereign analyst for Indonesia, said there are three factor that support those rating.

Corporate bond daily trading increased 163%

BI/exchange

19/10/2010

Irvin Avriano A.

Bisnis Indonesia

Corporate bond daily trading increased 163%

JAKARTA: The average daily trading volume of corporate bonds during the 3rd quarter of 2010 increased by 163% or at IDR369.03 billion per day compared with daily average during the 3rd quarter of 2009 as much as IDR140.45 billion per day.

Based on data from the Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia) that been published today, the daily trading frequency of bonds issued by corporations, including corporate bonds and sukuk, has increased by 69%. The increasing frequency happens from 36 times per day to 61 times per day for the same period.

Ramdhan Ario Maruto, PT Anugerah Securindo Indah Head of Fixed Income Division, agreed with corporate bonds trading data. According to him, the average trading volume increased due to begin the shifting of government bonds (surat utang negara/SUN) market to the corporate bond market.

"The shifting was reflected by the habit of regular market participants transact government bond with the amount of IDR10 billion-20 billion in a single transaction, and transactions of corporate bonds began to rise from the usually IDR1-2 billion to IDR5--10 billion per transaction," he said when contacted this afternoon.

Analyst: SUN market will flat next week

BI/bursa

Irvin Avriano A. & Stefanus Arief S. (09)

Bisnis Indonesia

Analyst: SUN market will flat next week

JAKARTA: Analyst predicted price of the Indonesian government bond (surat utang negara (SUN) will move slightly next week.

Ramdhan Ario Maruto, PT Anugerah Securindo Indah Head of Fixed Income Division, said it will happen because local investor will hold the hiked price that happen before to limit the gain they already had.

"They want to limit their target in the next year, that will underpinned by how much gain they earn this year," he said to Bisnis today.

He said the price record-breaking that has occurred almost every day also has entered the final stage because the transactions volume of local market players have also been declining, indicating speculative transactions is reduced.

'Trade retail sovereign bond'

'Trade retail sovereign bond'

Thursday, 26/08/2010 11:22:37 WIB
by: Irvin Avriano A.

JAKARTA: Bond analyst suggested investors to trade on retail government bond (SUN) of FR0053 and FR0054 series.

“Although market is still likely to continue moving in limited trend or yield, investors are recommended to choose retail shares or FR0053 and FR0054 series,” Dian Abdul Hakim, bond analyst at PT Kim Eng Securities, said in a report today.

Dian said sovereign bond market is still stable, as reflected from the index of Government Securities Traders Association (Himdasun) that moved between 104.9 – 105.

“The core Inflation is predicted to fall from July's actual figure at 4.15% to 4.1%.”

Yet, as Dian continued, the stagnant condition is vulnerable to the pressure from this month's inflation to be announced early next month.

Month-on-month inflation might be lessen from 1.5% to 1.0% last month but year-on-year inflation rate will gain from 6.2% to 6.7%, he adds citing a consensus. (T05/NOM)

SUN price skyrocketing: Moody's increases Indonesia debt rating prospect

Tuesday, 22/06/2010 00:00 WIB

SUN price skyrocketing: Moody's increases Indonesia debt rating prospect

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The government debt rating prospect from stable to positive level given by the Moody's Investor Ser-vices yesterday gave a boost to the government bond (SUN) trade and price at secondary market by 100-250 basis points (bps).

Based on the data of the Inter Dealer Market Association (IDMA/Himadsun), the SUN price index scored 159 bps from the level of 102.8 percent to 104.43 percent triggered by the massive buy of foreign investors upon considering the diminishing risk of investment.

"The buy action happened yesterday was the overseas investors typical larg amount of transaction. Rarely local investors buy in such a large amount of buy," said Fixed Income Division Head of PT Anugerah Securindo Indah Ramdhan Ario Maruto yesterday.

The skyrocketing SUN price was seen particularly to the FR007 series by 15 bps, FR0052 by 313 bps, and FR0040 by 145 bps. The mounting price continued the significant rally since a month before or last week in particular.

As to Ramdhan, SUN hike happened was not due simply to the upgrading prospect of Indonesia rating but also the positive sentiment of the appreciation of Yuan China leading to US dollar depreciation to almost all Asian currencies including rupiah.

The other reason is the time limit factor for foreign investors possession to the BI promissory notes (SBI) which led the investors composition of portfolio to SUN.

The portion of foreign ownership portion of SUN also increased into 24.68 percent by end of last week from 24.31 percent June 15. That was the top since the SUN issuance due to the surpassing position of April 29 of 24.61 percent.

The skyrocketing SUN price which is on contrary to the yield level here reflected the less expensive cost of fund borne by the government and also corporation to seek funding resource at the market.

The escalating SUN market situation also happened to the stock market. Yesterday, the index hit the top record along the history at 2,981.28 as from the previous record of 2,971.25 on April 30, 2010. The index was closed at robust position by 0.42 percent at the level of 2,941.90.

The soaring index also happened simultaneously to the soaring Asian regional bourse and global bourse driven by the sentiment of China to provide flexibility of yuan. Market considered the policy to upsize liquidity of global fund flow.

Moody's rating yesterday upgraded the outlook prospect of rupiah and global denominated bond rating in Indonesia from stable to positive level. Indonesia bond rating was set at Ba2 level.

The mounting rating prospect here also happened to the ceiling of global denominated bond rating from Ba1 level and the ceiling of global denominated deposit rating at Ba3 level.

The growing rating also forced Moody's to increase the rating prospect of two other companies, PLN and PGN from stable to positive levels. The rating of both firms was set at Ba2.

Moody's last rating action to Indonesia was on September 16, 2009 as from Ba2 level with stable outlook.

Separately, Deputy Governor of Bank Indonesia Hartadi A. Sarwono said the positive outlook given by Moody's showed the potential chances to increase Indonesia rating to the investment grade in the upcoming year still require two notches.

As to him, the revision made by Moody's was based on the expectation and it is time to change noting that Moody's rating is lower than rating given by S&P (BB/positive) and the Fitch (BB+stable).

Finance Minister Agus D.W. Martowardojo said the mounting debt rating encourage the government to maintain monetary and fiscal stability to meet the investment grade.

Economist of Mandiri Sekuritas Destry Damayanti said the so much awaited now is the re-rating story in which Indonesia is projected to be back to grad investment level." (Bisnis/iaa/agi/aca/hta/bsi)

SBI restricted, SUN price mounted: Corporate bond emitter to get benefited

Friday, 18/06/2010 00:00 WIB

SBI restricted, SUN price mounted: Corporate bond emitter to get benefited

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The restriction of investment period at the BI promissory notes lead to the much more fund flowing to bond market and mounting the government bonds (SUN) pricing.

The SUN price index the last three weeks sharply jumped by 357 basis points. Data of the Government Bond Traders Association (Himadsun) shows that SUN index climbed up since May 26 hitting from the 98.34 percent level to 102.06 percent yesterday.

On contrary, the yield of SUN with 10 years tenure as the target plunged sharply to the lowest level since June 2005. The yield of FR0031 SUN series maturing in November 2010 decliend by 79 basis points from 9.28 percent on May 26 into 8.49 percent yesterday.

The government discourse to have foreign capital flow restriction last year finally resulted in the investment restriction of SBI by stipulating obligatorily the investors here to hold the instrument for one month at minimum.

The policy will be implemented by July 7 to both foreign and local investors. However, the central bank statement prior to the deliberation of the policy has boosted up the incoming capital to bond market.

Head of Debt Capital Markets of PT NC Securities Heru Helbianto predicted the better SUN market condition will continue with the SBI investment restriction.

"Investment profile of SUN and SBI investors are different, but later there will be little diversification dealing with the restriction problem here to share investment portfolio of each investor," he said yesterday.

He said investors in SBI market has short term profile unlike the SUN investors profiles.

PT Penilai Harga Efek Indonesia (PHEI/IBPA) President Director Ignatius Girendroheru said the price rally has happened upon the worsening European market sparked by the Greece debt crisis.

The falling SUN yield benefits the company with the bond issuance scheme because SUN yield becomes the standard of coupon or corporate bond interest setting. The companies eyeing bonds include PT Selamat Sempurna Tbk, and PT Srana Multigriya Finansial.

Furthermore, BI will also issue 9 and 12 months tenure instruments to keep the capital inflow longer in Indonesia.

"One positive thing for the bond market of BI regulation is the investors that do not plan to buy SBI will play with bond due to the absence of instrument restriction," said analyst of PT Mandiri Sekuritas Handy Yunianto as quoted by Bloomberg yesterday.

Data compiled by HSBC Holdings Plc shows SUN has provided yield up to 10.5 percent this year or considered the best performance as form the other 10 Asian bond markets.

Data of the debt management directorate general per January to June 15 shows that foreign investor possession increased form DIR115.02 trillion into IDR149.32 trilion or 19 percent into 24 percent as form the total of tradable SUN worth IDR590.15 trillion into IDr614.03 trillion. (Bisnis/iaa/pul)

Foreign ownership climbs to 20,33%

BI / bursa

4/3/2010

Irvin Avriano A.

for Bisnis Indonesia

Foreign ownership climbs to 20,33%

JAKARTA: The ownership of foreign investors in government bonds (surat utang negara/SUN) increased IDR730 billion at the beginning of this month, 2 March, at the level of IDR121, 54 trillion, from the position for IDR120, 81 trillion last month.

The position fulfill the composition of ownership of foreign investors in the position for 20.33% of the value of outstanding SUN.

Based on data from the Directorate General of Debt Management Ministry of Finance yesterday, that continued increase improvement occurs accumulatively since late last year that reached IDR13.54 trillion, from IDR108 trillion positions.

PT Anugerah Securindo Indah Head of Fixed Income Division Ramdhan Ario Maruto said the continued increase in the positive movement of the secondary market of government bonds have occurred since the beginning of the year.

"It was somewhat corrected in this day, but not much, maybe more because of Pansus for Bank Century. However, positions of foreign investors did not take off in large numbers from the market," he told Bisnis tonight.

He considered that ownership of foreign investors is also reflected from the auction result that held on Tuesday. Directorate General of Debt Management site shows the results of three series SUN auction by the government was successfully launch the investment instrument IDR5.8 trillion, larger than the indicative target the government set at IDR4 trillion level.

Value of the issuance was also greater than last week's auction results, IDR4.42 trillion. In the last two auction, bidders submit bids in large numbers in the amount of IDR12.34 trillion in the last week auction and for IDR13.01 trillion in an auction that was held this weekend.

SUN ownership by foreign investors continue to increase accumulated since the beginning of this week, IDR1.68 trillion from the level of IDR119.13 trillion since February 18th to as low as IDR120.81 trillion to the end of last month.

SUN ownership report mentions that ownership had declined to the level IDR119.12 trillion in February 22th and IDR118.87 trillion on February 23th. However, the ownership movement was up again on February 24th and February 25th.

Ramdhan assess the number of requests that are not absorbed by the government in the auction led to some bond market participants seeking SUN instruments in the secondary market, causing prices of government bonds in the secondary market increased.

The government also intends to auctioning four series of state sharia securities (SBSN/state sukuk) with the indicative target of IDR1 trillion. The four series are IFR003 due on 2015, IFR0005 due 7 years, IFR0006 due 11 years, and 15 years tenured IFR0007.

Yield value that the government released to bidders on Tuesday also still in range of PT Bank Danamon Indonesia Tbk bond strategist & economist Helmi Arman prediction in his research before the auction. He estimated yield for SPN20110303 series at level 6.81% - 6.93%, FR0027 series at level 8.4% - 8.53%, and the level of yield 10.62% - 10.75% for FR0052 series.

SDHI sukuk given 7.61% coupon

BI / bursa

4/3/2010

Irvin Avriano A.

for Bisnis Indonesia

SDHI sukuk given 7.61% coupon

JAKARTA: The government issued a Indonesian Hajj Funds Bond (SDHI) worth IDR3.34 trillion which is allocated for investment through the placement of the Ministry of Religious Affairs and Hajj community endowment fund (Dana Abadi Umat/DAU) yesterday. Coupon yield as much as 7.61% per annum (yearly) is given for these bonds.

Islamic bonds SDHI 2012 A series is include the category of Islamic securities (SBSN/government sukuk).

Based on the press release Directorate General of Debt Management Office Ministry of Finance at its official website mentioned the investment instruments form by al-Khadamat ijara akad tenured for two years and will be placed into two separate investment account.

Ownership of the first accounts is Pilgrimage Organization Fund (BPIH) IDR2.89 trillion and by the DAU of IDR447 billion.

The issuance is the third stage of the whole SDHI which began publishing last year. Sukuk issuance was conducted by Indonesian SBSN Publishing Company.

In the last year, the government has issued SDHI 2010 A on May 7th, valued RIDR1.5 billion with a coupon of 8.52%. The second issuance is divided into SDHI 2010 B series and SDHI 2010 C totaling IDR886 billion.

SUN's foreigns ownership climbs again

BI / bursa

3/3/2010

By: Irvin Avriano A.

for Bisnis Indonesia

SUN's foreigns ownership climbs again

JAKARTA: The ownership of Indonesia T-Bills (surat utang negara/SUN) by foreign investors accumulatively increased as much as IDR1.68 trillion from the level of IDR119.13 trillion to the level of IDR120.81 trillion since February 18 untill the end of last month.

SUN ownership report from the Directorate General of Debt Management Ministry of Finance released published today shows that the ownership once had declined to the level of February 22 to IDR119.12 trillion and IDR118.87 trillion on February 23th. However, the ownership movement was invreased again on February 24th and February 25th.

Official Site of Debt Management Directorate also shows the government also intends to auctioning four series of sharia state securities (SBSN/sukuk) next Tuesday with the indicative target of Rp1 trillion.

The four series SUN that will be auctioned are IFR003 due on 2015, IFR0005 tenured 7 years, IFR0006 tenured 11 years, and 15 years tenured IFR0007.

The website also shows the three series of SUN auction held by the government today succeeded issuance of the investment instrument worth IDR5.8 trillion, larger than the indicative target which the government set at the level IDR4 trillion. The issuance values were also greater than last week's auction results of IDR4.42 trillion.

In the two last auctions, bidders submit bids in large numbers worth IDR12.34 trillion at the last week auction and as much as IDR13.01 trillion in this afternoon auction.

Yield value that the government released to bidders today also still in range that PT Bank Danamon Indonesia Tbk economist & bonds strategist Helmi Arman predicts in his research this morning.

He estimated yield SUN SPN20110303 series will be set at level 6.81% - 6.93%, series FR0027 at level 8.4% - 8.53%, and the level of yield 10.62% - 10.75% for series FR0052 will be released in the auction.

ICRA apply for rating permit to Bapepam-LK

BI / bursa

17/2/2010

Irvin Avriano A. & Yuda Prihantoro

Bisnis Indonesia

ICRA apply for rating permit to Bapepam-LK

JAKARTA: PT ICRA Indonesia request permission for rating agency license to the Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK).

Accounting Standards and Disclosure Bureau Chief of Bapepam-LK Etty Retno Wulandari, whose supervise rating agencies, said the request was submitted to the capital markets authority since January.

"They've have delivered the submission for a while, there will be assessment to learn about it. We already have work on them," she told Bisnis this weekend.

She explained the ICRA Indonesia associated with the original rating agency from India, ICRA Ltd. Data from its official website shows it is a small part-owned by Moody's Investors Service, as much as 28,5%.

The ratings company is also a public company which listed on the Bombay Stock Exchange and National Stock Exchange in India, owned by Moody's Investors Service through Moody's Investment Co India Pvt Ltd. ICRA India had formed since 1991 with the name of Investment Information and Credit Rating Agency of India Limited.

However, Etty not sure ICRA associate with Moody's Indonesia which had closed the company's branch office in Indonesia, PT Moody's Indonesia, in July last year. Moody's Indonesia was closed at the end of last year due to the policy by its parent company, among with several other branches, namely in Taiwan and Indiana, USA.

Etty added, one of the proposed directors of the company to lead the ICRA Indonesia is Minon Almasyur, which had led Moody's Indonesia as president director before the closing.

After Moody's Indonesia resignation, the existing ratings transfered to PT Pemeringkat Efek Indonesia (Pefindo) and PT Fitch Ratings Indonesia.

However, when confirmed, Minon did not respond the short message service which sent yesterday. When asked for comment about the entry plan of ICRA to the ratings industry, Pefindo President Director Kahlil Rowter didn't able to give answers.

"The Pefindo internal still have not discussed about it. We're still waiting for the results," he said.

Baraditta Katoppo, the Fitch Ratings Indonesia President Director, said that he had hear the plan of ICRA to setlle in Indonesia. He said that the company is very welcome with other ratings company that will establish in Indonesia.

SUN foreign portion increased to Rp119, 01 trillion

SUN foreign portion increased to Rp119, 01 trillion

Wednesday, 17/02/2010 13:00:16 WIB

By Irvin Avriano A.

for Bisnis Indonesia

JAKARTA (Bisnis.com): Foreign ownership in government bonds (surat utang negara/SUN) continues to increase from IDR118.84 trillion on Monday to IDR119.01 trillion on Tuesday this week amid a crisis of Greece and Spain state's bonds are still plagued the global capital markets.

Directorate General of Debt Management Data MoF which issued today showed that ownership through ownership of foreign investors continue to break the record again which occur since the beginning of this year.

Bond analyst from PT Kim Eng Securities Dian Abdul Hakim in his research said the global bond market participants confused by the Greek bond sale plan as an effort to overcome the debt crisis in the country to close the budget deficit.

"However, through Goldman Sachs as one of the underwriters [the Greek government bonds], the publication also features currency swap with a pretext to minimize any additional risk for the circulation of these bonds," he said in their company's research released today.

He said the assess of the bond crisis did not affect the changes in the yield movement in the SUN secondary market significantly, because it just still moving in the range of 3 basis points (bps) in Tuesday trading record.

Market activity is still moderate, he said, causing the movement of yield from some tenor SUN is also still a little fluctuating.

He's just worried about the negative issues in line with the Greeks is the U.S. government bond prices bounce back to all the tenure of the bonds due to transition back into the U.S. market, in an effort to seek safer debt instruments. (wiw)

Investors focus moves to domestic

Monday, 15/02/2010 00:00 WIB

Irvin Avriano A. & Arif Gunawan S.

for Bisnis Indonesia

Investors focus moves to domestic

JAKARTA: Investor at domestic bourse is predicted to more the sentiment focus on the domestic following the betterment of global investor sentiment in relation to the Greek debt settlement.

The Jakarta Composite Index (JCI) is suspected to enter the consolidation trend this week while waiting for the following positive sentiment.

Research analyst of PT Panin Sekuritas Tbk Purwoko Sartono said the index might test the psychological level of 2,560 prior to the following trend direction after the rebound transaction last week.

"This wee, we assume the index moves to consolidation of aside. JCI will test the psychological level of 2,560 and political situation still comes after the bourse this week," he said last week.

At global bourse, trend of bourse last week showed the indication of global investor trust recovery when the blue chips rebound such as Shanghai index growth of 1.09 percent, and Nikkei-225 rose 1.29 percent.

JCI was rebound in Thursday and Friday with the two consecutive days rise by 2.02 percent into the level of 2,534.137. The commodity sectors like mining and plantation came up last week with the increase of 2.07 and 0.97 percent.

Formerly national index fell down following the correction happened to regional bourse amidst the fear of the default of Greece, Spain, and Portugal which might trigger a worsening recession.

Bloomberg data shows the fear has slashed down the stock and commodity investment. On contrary, US dollar finance market was rebound.

Dollar index which recorded the currency against six leading exchange rates worldwide rose into 80.75 or the highest since June.

Purwoko said the commitment of European leaders to help ease Greece has cooled down the negative sentiment of the global bourse. "Investor trust has been recovered after two week crisis of Greece debt which potentially affects other European Union countries," he said.

In turn, domestic political party might become the investors concern. The JCI will go along with the progress growing from fundamental point of 2,511 into resistant point of 2,559 in the first day of this week.

Division head of Fixed Income of PT Anugerah Securindo Indah Ramdhan Ario Marutho said the government bond (SUN) market will plunge slightly this week and climb up the yield by 10-5 basis points (bps).

The price correction is affected by the global market condition and Chinese New year holiday yesterday.

"Early this week will remain static and not high as our client abroad mostly will enjoy vacation. It is declining noting that the global negative sentiment has not cooled down yet," he said yesterday. (Bisnis/ags/iaa)

7 retail sukuk sales agents tapped IDR4.18 trillion

Irvin Avriano A.

for Bisnis Indonesia

Monday, 08/02/2010 00:00 WIB

7 retail sukuk sales agents tapped IDR4.18 trillion

JAKARTA: The sales of 002 (SR-002) sukuk series by seven sales agents reached IDR4.18 trillion last week and the total demand is estimated to reach IDR7.5 trillion.

Based on the information of some sukuk sales agents, PT Bank Mandiri Tbk could book the largest sales of IDR1.5 trillion.

Wealth Management Group Head of PT Bank Mandiri Tbk Inkawan D. Jusi said 60 percent came from Jakarta. "There is still large potential. We alone closed the order since last Thursday," he said yesterday.

The sukuk sales will reach IDR7.5 trillion by end of calculation as Bank Mandiri as the largest sales agent could contribute 20 percent sales as from 18 sales agents of investment products.

AVP Fixed Income of PT Bahana Securities Farid A. Nasution said the company could get IDR700 billion booking from early target of IDR400 billion.

"The demand for corporate target upsize was eventually granted by the government into IDr700 billion. Our demand stands at IDR800 billion and so we should reject some demands."

The compnay also get assistance for the distribution from sub sales agents of SR002 series, PT Bank Rakyat Indonesia Tbk (BRI), so the product sales are distributed evenly to some regions outside Java. He said BRI contributed 15 percent sales as from the total sales.

Farid said there is still large potential for retail sukuk particularly upon noting three years tenure and the 8.7 percent coupon per year.

Vice President Director of PT Reliance Securities Tbk Nicky Hogan said the company could collect investors IDR150 billion demand. But the company was lately proposing target upsize to Finance Ministry so the company failed to get upsized booking from the government. "So, we should reject some booking."

Head of Retail Distribution of PT Danareksa Sekuritas Sujadi Darmotinojo said the company could meet the IDR400 billion retail sukuk booking.

Head of Debt Capital Markets of PT Trimegah Securities Tbk Agus Salim said the company also succeeded to collect the IDR470 billion sales as the upsized initial target of IDR300 billion. (Bisnis/iaa)

Astra Sedaya offer bond's coupon 8.14%--10.74%

photograph of Astra Sedaya President Director Djony Bunarto Tjondro

Irvin Avriano Arief

for Bisnis Indonesia

Astra Sedaya offer bond's coupon 8.14%--10.74%

JAKARTA: PT Astra Sedaya Finance has offer the investors for its XI/2010 worth IDR1 trillion bond's coupon between 8.14%--10.74%. Astra Sedaya is one of the subsidiaries company of PT Astra International Tbk.

Astra Sedaya President Director Djony Bunarto Tjondro said the coupon will be divided into six tranches that will be matured in 2011--2014.

The A tranches that will matured in 2011 will give premium at 110 basis points (bps) – 150 bps from yield of government bond (SUN/surat utang negara) that set to be their benchmark.

Premium is spread between the amount of coupon that will be given to the investors that counts from government bond's yield in the secondary market. The unit of 100 bps is equal with 1%.

The B and C tranches that will be matured in 2012 will give premium aroun 110 bps – 160 bps and 115 bps – 215 bps. D and E tranches will be matured in 2013 is likely willl offer premium between 125 bps – 250 bps and 135 bps – 250 bps.

Than, F tranches that will be matured in 2014 will give premium as much as 150 bps – 250 bps.

"The value of issuance could be higher if the demand and the coupon is good for us," said Djony to the press yesterday.

Based on quote when the market closed yesterday, yield of T-bond FR0015 series which has used as benchmark for the shortest Astra Sedaya's bond are on 7.04% level. Thus, the company potentially give coupon no less than 8.14% for the series.

Yield of FR0051 T-Bond which is set as the benchmark for the longest bond series are on8.24% level. The condition makes the company could give coupon no more than 10.74%. He explained the company will paid the coupons in every three months to their investors.

According to him, Astra Sedaya and the other companies member of Astra Credit Company projected the financing until the end of the year could reach IDR16 trillion, higher than IDR14.2 triliun that booked at the end of last year.

The company used service from PT Indo Premier Securities, PT HSBC Securities Indonesia, PT CIMB Securities Indonesia, and PT Mandiri Sekuritas as their bond's lead underwriter.

Demand of SR002 reach IDR5.56 trillion

By Irvin Avriano A.

Bisnis Indonesia

Demand of SR002 reach IDR5.56 trillion

JAKARTA: The demand for retail sukuk series 002 (SR-002) until yesterday reached IDR5.56 trillion from 17 selling agent.

Director General of Debt Management Office Ministry of Finance Rahmat Waluyanto said large number of requests make the government no longer give permits to 18 selling agents to upsize the initial target of SR-002.

"Today [yesterday] the government officially closed the upsize request," said Rahmat via SMS yesterday.

He indicates the number of requests has been reach more than the amount of IDR5.56 trillion because the report in only from 17 to all 18 agents. One of the selling agent, he said, too late entering the number of requests.

Wealth Management Group Head PT Bank Mandiri Tbk Inkawan D. Jusi, one of the banks that became selling agent, said the company already had a request to IDR1.1 trillion until yesterday.

Target Bank Mandiri is upsized to about IDR1.5 trillion after the request has exceeded the company's initial target of IDR800 billion at the end of last week.

Director of PT Trimegah Securities Tbk Karman Pamurahardjo, said the company which became one of the selling agent, said the request through it that has gone through an initial target of Rp300 billion. The company are also asking for approval from the government yesterday to upsize the target.

"We've filed upsize, but can not announce the amount now because it is still waiting for approval from the Ministry of Finance."

Head of Retail PT Danareksa Sekuritas Sujadi Darmotinojo said the company was getting requests valued at Rp398 billion, a little bit smaller around IDR2 billion -- IDR3 billion below the company's target of IDR400 billion.

Target is already in-upsize from the initial target of Rp 300 billion which was filled earlier this week.

Increase sales

He considered the total number of requests that reach IDR5.56 trillion is due to the number of companies that ask for the upsize. "Most likely it is because many agents do upsize like we are."

Head of Investment Banking of PT Mega Capital Indonesia Zulhelfi said the company also has a demand around IDR170 billion yesterday.

The number is approaching the target at IDR200 billion level, which was has been up-sized from the earlier target of IDR100 billion. The Company achieved initial targets at the end of last week.

Directorate General of Debt Management data showed foreign ownership in government bonds (surat utang negara/SUN) at the end of last week reached IDR115.02 trillion, which is still increased compared to the previous day's position IDR114.89 trillion.

Rahmat said the government is not worried by the amount of foreign ownership of SUN due the potential outflow associated with a large potential. He said most investors is usually including in long-term type of investors.

"Foreign investors typically buy and hold. Most of which they have, as many as 72%, tenured 5-year or longer."