Salim Ivomas bond issuance below target: Jamsostek calls for 12-13% coupons

as published in Bisnis Indonesia daily newspaper

Wednesday, 18/11/2009 00:00 WIB
Salim Ivomas bond issuance below target
Jamsostek calls for 12-13% coupons

JAKARTA: The amount of I/2009 bond issuance and I/2009 sharia bonds of Salim Ivomas Pratama was IDR780 billion or less than the former scheme worth IDr1.25 trillion.

This is due to the resignation of PT Jamsostek and some investors noting that the offered coupon is 11.65 percent or lower than the demand.

"One of factors causing some investors walked out is that emitter set was too under standard than the investors expectation regarding the noted reputation of Salim Group and Indofood as the holding company," he said to Bisnis.

Other resources said the Jamsostek coupon demand is too high or 12-13 percent and that if emitter set the bond and sharia bond coupon 12 percent, the bond request would have been oversubscribed or could even raised into IDR1.5 trillion.

Investment Director of Jamsostek Elvyn Gani Masasya conceded the coupon set at the level of 11.65 percent will not be included in the investment criteria. But she did not provide detail explanation on the coupon asked by the company to Salim Ivomas as the underwriter.

The company formerly has set higher coupon offer than the earlier offering of 11.1-11.6 percent or 175-225 bps refering to the yield of the government bond of FR0026 series. Initially the maximum yield was at the level of 9.35 percent.

But, SUN yield of the series here was raised early this month up to 9.44 percent and the bond coupon indication increased up to 11.6 percent at maximum. Some market players suspected there was cornering action of SUN price to form new pricing at bond secondary market.

The company reason to refer to the coupon asked by the investors is that Salim Ivomas adjust it to the corporate short and long term lending rate.

In the issuance, emitter was assisted by five securities companies as the underwriters whose range is based on the bond and sharia bond sales result, namely PT OSK Nusadana Securities Indonesia, PT Mandiri Sekuritas, PT Kim Eng Securities, PT CIMB Securities Indonesia, and PT Danareksa Sekuritas.

Salim Ivomas also appointed PT Bank Mega Tbk as the trustee boards of the issuance of both notes.

Bond offering is scheduled from October 28 to November 11, 2009. Bapepam effective statement will be in November 20, 2009. Besides, for the bond schedule for IDX listing is on December 2, 2009.

The bonds and sharia bonds here got AA- ratings from PT Pemeringkat Efek Indonesia.

When confirmed, Director of Investment Banking of Danareksa Sekuritas Marciano Herman was not available for comment last night, and so were SVP Head of Debt Capital Markets of CIMB Securities Indonesia A. Siwiwardhani and Director Kim Eng Securities Syahrizal Yusuf. (Bisnis/21)