Summarecon negotiating another IDR250 loan

BI / exchange

10/06/2010

Irvin Avriano A.

Bisnis Indonesia

Summarecon negotiating another IDR250 loan

JAKARTA: PT Summarecon Agung Tbk are negotiating a loan with a local private bank to finance Summarecon Serpong Mall projects worth IDR250 billion.

"However, we can not disclose the identity of the bank as not final yet," said Summarecon President Director Johanes Mardjuki to Bisnis yesterday.

According to him, the loan would still be in line in the funding process for the company's capital expenditure (capex) plans to invest IDR800 billion that been budgeted until next year. Funds were allocated for Apartments Menara I, Harris Hotel, Summarecon Bekasi phase I, and Summarecon Serpong Mall.

Earlier this year, the company had revealed would require a start-up funds amounting to IDR400 billion from the total fundraising.

He said the local private bank loan would completed the earlier agreed loan worth IDR250 billion from PT Bank Mandiri Tbk. Execution of the loan, he said, just waiting for the signing of contracts.

Johanes said the funds would be used by the company to build roads and infrastructure in Summarecon Bekasi.

To smooth the way to deliver the Bank Mandiri loan, it makes the company must seek approval from their II/2008 bond and sukuk I/2008 holders to replace the state-owned bank as the trustee issuance of both outstanding types of debt securities.

Approval is requested in the general meeting of bondholders (RUPO) and general meeting of sukuk ijarah holders (RUPSI) with total worth IDR300 billion that will pave the bank loan as agreed.

The base of the bond trustee replacement are from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) rule No.VI.C.3 about Relationship Between Credit and Guarantee Trustee and the Issuer.

The regulations limit the amount of loan can be granted the trustee must not exceed 25% of the value of bonds issued by the emitters from the trustee banks.

In RUPO and RUPSI which was held yesterday, investors had approved the replacement of both effects trustee for the listed bonds and sukuk of the property company.

"Both [RUPO and RUPSI] approved the replacement of Bank Mandiri to PT Bank Rakyat Indonesia Tbk [BRI]," says Johanes.

In addition to bonds, Summarecon also listed its shares on the stock market which coded SMRA. The stock price corrected of 1.17% or by Rp10 to IDR840 level at the market closing yesterday afternoon. The stock price formed the company market capitalization reached IDR5.73 trillion.

In her research on May 12th, PT Bahana Securities analysts Natalia Sutanto, which quoted by Bloomberg, give recommendation to change the level of company shares from 'buy level' to 'hold' level with target price of IDR950 for the next 12 months.

Eximbank to get US$250 million loans: Medco reviews the US$50 million notes

Thursday, 10/06/2010 00:00 WIB

Eximbank to get US$250 million loans: Medco reviews the US$50 million notes

Irvin Avriano A.
Bisnis Indonesia

JAKARTA: Indonesia Eximbank is about to get US$250 million loans from nine domestic and overseas banks. At the same time, the company also prepares bond issuance in semester I/2011 worth US$300 million.

Senior Executive Director of Indonesia Eximbank the commercial name of the Indonesian Export Multifinance Company Arifin Indra said the loan here involves Standard Chartered Bank, Sumitomo Mitsui and Bank of Tokyo and this will be signed next week in Singapore.

"The loan is in US dollar denomination with 2-3 years tenure with an expected top rate of 185 basis points from the Sibor (Singapore Interbank Offered Rate)," he said after public expose of the I Eximbank bonds in Jakarta yesterday.

Besides, he also said currently the company also processes the loans from the World Bank and the Asean Develop-ment Bank (ADB)which is expected to disburse US$100 million loans each.

This year the capitalization will be increased from the government capital injection of IDR2 trillion which is expected to realize in the amended State Budget to cover the funding needs this year.

"This year needs IDR6.5 trillion budget to meet the financing expansion target worth IDR16.15 trillion up to yearend, including the budgeting for sustainable expansion."

Responding to the issuance of bond in semester I/2011, Director of Eximbank Basuki Setyadjid said the company plans to issue US$300 million bonds with an estimated 6-7 percent coupon. But the schedule, value, and bond coupon are still subject to change.

On the other side, Arifin also said the company set the bond yield in semester I/2010 at 7-10 percent. The bond here will consist of four series with the targeted proceeds worth IDR2.5 trillion and might be upsized to IDR3 trillion when there is mounting demand.

The four series here include the A series with 370 days tenure with yield reference to that of the government sovereign bond (SUN) of FR0016 plus 50-125 basis points or 7-7,75 percent. The B series with 3 years tenure refers to SUN FR0019 plus 50-125 bps or 8.57-9.33 percent yield.

The C series with 5 years tenure refers to the SUN FR0027 plus 50-150 basis points or with 8.82-9.80 percent yield. The D series of 7 years tenure refers to SUN FR0028 plus 50-150 basis points or the coupon at 9-10 percent.

Arifin said the fund tapped from bonds will be allocated to support the financing expansion at export and import market which is targeted at IDR16.15 trillion up to yearend or grow by 74 percent from IDR928 trillion in previous year.

Medco review MTN issuance
Meanwhile, giant oil and gas company PT Medco Energi Internasional Tbk reviews the issuance scheme of medium term notes (MTN) III/2010 worth US$50 million.

Investor Relations of Medco Nusky Suyono said the decision was made as the company still waits for the regulation of Bapepam-LK on MTN based mutual fund.

"This relates to the investor of our notes scheme which is deemed a mutual fund institution. Besides, we also observe the market situation as the bond issuance consideration," he said yesterday.

The regulation Nusky said here is the policy of Bapepam=-LK which holds all effective permit for the MTN-based mutual fund issuance dealing with the mapping for MTN criteria that could be bought by mutual fund, particularly the protected mutual fund.

Selamat Sempurna allocated bond issuance jack-up production
Meanwhile, PT Selamat Sempurna Tbk, the producer of radiator and automotive filter, plans to allocate the fund of II/2010 bond issuance for the capacity rise of radiator production worth IDR120billion and debt restructuring of IDR180 billion.

Director and Corporate Secretary of Selamat Sempurna Ang Andri Pribadi said the bonds with 3, 4, 5 years tenure here are worth IDR300 billion. The company currently waits for the pre effective statement from Bapepam-LK for bond issuance here.

"We plan to add machine and equipment to increase aluminum radiator production which now has 1.2 million capacity into 1.9 million per year. The machinery and equipment have been ordered and would be operational by end of quarter III/2010," he said.

Andri said the company expected the soaring production will go along with the mounting sales so as to meet the revenue growth target of 19.94 percent from IDR1.37 trillion last year into IDR1.64 trillion this year. (Bisnis/fsi/08/iaa)

Fitch: Arpeni intend to seek new investors

BI / exchange

09/06/2010

Irvin Avriano A.

Bisnis Indonesia

Fitch: Arpeni intend to seek new investors

JAKARTA: PT Arpeni Ocean Line Tbk intend to seek new investors to inject funds as to strengthen its capital base and liquidity as a preliminary step to restructure its debt obligations and their bonds.

The information was revealed in PT Fitch Ratings Indonesia research published yesterday. In the research, Fitch Corporate Ratings Team Director Buddhika Piyasena said Arpeni also freeze payment of principal of bank debt and other liabilities are also deemed to continue in an informal agreement.

Fitch is the rating agency that assesses the company finance, related to the issuance of the company's corporate bonds the are denominated in US dollars.

The rating agency will also review the ratings when Arpeni capitalization structure and credit profile of issuers have more clearly, along with the assessment on the ability to generate operating cash.

"Ranking Arpeni can benefit from increasing their capital structure and liquidity profile of the additional equity and restructure its credit profile. However, taking action based on debt ratings downgrade is still possible, "said Buddhika in the research yesterday.

In researching the same time, Fitch has assign the US dollar-denominated bond rating at level C, related with coupon of debt payment worth at US$6.21 million last week.

Selamat Sempurna issue bond for raise production

BI / exchange

09/06/2010

Irvin Avriano A.

Bisnis Indonesia

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).

Medco plans to issue a US$50 million MTN

BI/bursa

10/6/2010

Irvin Avriano A.

Bisnis Indonesia

Medco plans to issue a US$50 million MTN

JAKARTA: PT Medco Energi Internasional Tbk, a publicly listed energy and energy-construction company, intend to issue medium-term notes (MTN) III/2010 worth US$50 million.

This was revealed in research on PT Pemeringkat Efek Indonesia (Pefindo) published today. Medco MTN issue plan ratings set at the idAA- level .

The issuers will use the proceeds fund from the MTN issuance to restructure its debt (refinancing), investment, and working capital.

The research was also mentioned Pefindo give the same rank, at idAA- level, for outstanding Medco bonds and MTN .

Indonesia Stock Exchange data shows the issuer still has II/2009 bonds A tranches worth IDR513.5 billion which will mature in 2012, the B tranches amounting to IDR986.5 billion which will mature in 2014.

In addition, the company also still has MTN I/2009 series worth US$42.1 million and MTN II/2010 series worth US$57.9 million.

Abiprayadi and Bowo will compete to be APRDI chairman

BI/bursa

10/6/2010

Irvin Avriano A.

Bisnis Indonesia

Abiprayadi and Bowo will compete to be APRDI chairman

JAKARTA: Chairman of the Asosiasi Pengelola Reksa Dana Indonesia (APRDI/Fund Managers Association of Indonesia) Abiprayadi Riyanto re-nominate to became the leader of the organization and will compete with the new candidate, Bowo Witjaksono Suhardjo today.

Some market players said the two candidates for president of the organization's mutual fund management companies have entered registration documents to the election board which closed in May.

"Both candidates are ready to compete tomorrow, the election will be done by all members of the association [APRDI]," an industry player told Bisnis yesterday.

Abiprayadi currently serves as PT Mandiri Investment Management president director. He used to lead PT ABN AMRO Investment Management, PT MeesPierson Finas Investment Management, and PT Mandiri Sekuritas.

While Bowo has led PT Danareksa Investment Management, PT Dhanawibawa Arthacemerlang, and currently serves as PT Recapital Asset Management president director.

Both confirmed the nomination and declared ready to compete when they confirmed. However, the both candidate do not want to disclose their programs to be fought because already has an agreement.

Abiprayadi and Bowo will compete tomorrow to get the most votes from as many as 68 members at the general meeting of members (rapat umum anggota/RUA) of the APRDI as well as election of new leaders of the company.

Acting as a committee chairman is Vice Chairman of APRDI Legowo Kusumonegoro, which currently served as the PT First State Investments Indonesia president director.

Selamat Sempurna set their bond tenure for 3, 4, and 5 year

BI/exchange

09/06/2010

Irvin Avriano A.

Bisnis Indonesia

Selamat Sempurna set their bond tenure for 3, 4, and 5 year

JAKARTA: PT Selamat Sempurna Tbk, a publicly listed automotive filter and radiator producer, plans to set tenure for their II/2010 bond for 3, 4, and 5 years, with a maximum issuance of IDR300 billion.

"The tenure was still tentative, depending on the result of the bookbuilding process later," said Director & Company Secretary Selamat Sempurna Ang Andri Pribadi to the press today.

He said the company will be assisted by PT Andalan Artha Advisindo Sekuritas (AAA Securities) and PT Nusantara Investindo Sekuritas as the bond issuance's underwriter.

The bond issuance plan, he said, already submitted to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) and the documents already processed since been sent a month ago.

He said currently the company is waiting for a pre-effective statement from the capital market authority in order to continue the marketing process of its debt securities.

"We hope pre-effective statement can be given by the capital market regulator this week or next week."

According to him, the company also has another option to reduce the amount of the bond issuance if market players not able to absorb the issuance of debt securities it maximally.

The other options, he said, is to take loan facility which has been obtained from PT Bank Mandiri Tbk and PT Bank Mizuho Indonesia.

However, he said, the company and the underwriter is still optimistic that the issuance of bonds will be success because the trend of interest rates still low, which will affect the determination of the coupons that are not too high.

Determination of coupons that are not too high will make the company only has a lower interest expenses.