Sarijaya mutual funds been transfered

as published in Bisnis Indonesia daily newspaper
Tuesday, 24/11/09
Sarijaya mutual funds been transfered

JAKARTA: Investors and the management of funds in two mutual funds, Sarijaya Smart Equity and Sarijaya Smart Mix that worth IDR25 billion -- IDR30 billion, transfered to PT Bahana TCW Investment Management.

PT Sarijaya Permana Sekuritas, the securities company that manage the mutual funds been suspended earlier this year after a criminal case filed by the capital market's authority that point to its owner, Herman Ramli. He was accused for use investors money to invest without permission.

"It's been organized well, and still waiting for the agreement," said Invesment Management Bureau Chief Bapepam-LK Djoko Hendratto to the press yesterday.

Bahana TCW Investment's President Director Edward Parlindungan Lubis said the intention of switching the mutual funds came from investors request.

He said that the name of the two mutual fund will became Bahana Equity Smart and Bahana Mix Smart.(Bisnis/21)

Bond coupon of Sarana Multigriya at 8.5%-10.79%

as published in the Bisnis Indonesia daily newspaper
Tuesday, 24/11/2009 00:00 WIB
Bond coupon of Sarana Multigriya at 8.5%-10.79%

JAKARTA: PT Sarana Multigriya Finansial (SMF) offered II/2009 bond coupon worth totally IDR350 billion with 1 and 3 years tenure at the level of 8.5-9 percent and 9.79-10.79 percent. The issuance is potentially to grow up.

Director of PT Bahana Securities Andi Sidharta said the reference used for the one year tenure bonds used SPN and the three year tenure will use FR008 as the reference. Premium offered ranges at 150-250 bps above the reference yield.

He said the offered coupon shows the company remains optimistic the high customers demand as it targets investors with short term horizon.

Andi opens chance to the additional issuance, would the demand and coupon required by the investors be considered lucrative.

"It is unlike other bonds with longer term many issued by end of the year," he briefed the press yesterday. Bahana Securities acts as single underwriter here.

SMF targets bank customers and investment managers which prefer short term tenure investment instrument.

He said there are three major factors leading to the company and emitter optimism with the bond issuance gains. First, the bond rating is at AA level by PT Fitch Ratings Indonesia. As to him, it is rare now for corporate to get that high rating.

Second, the emitter is state owned enterprises fully guaranteed by the government. He cited example when every IPO of bonds or stocks, investors are always interested in the issued investment instrument.

Third, the offered bond coupon is higher than bank and deposit rate commonly at 8 percent with relatively the same tenure.

President Director of SMF Erica Soeroto said the company plans to disburse IDR450 billion financing next year. "But , it still waits for shareholders approval."

Director of SMF Sutomo said the company has sought some investment managers to market mutual funds using assets-backed securities instrument (EBA) issued twice by the company this year.

The derivative securities issuance here stands at IDR502 billion but mostly absorbed by SMF as the standby buyer.

He said retail investor later could enjoy protected mutual fund with EBA basis equity particularly EBA DSMF-BTN 02/2009 the company just issued.

"The coupon is still attractive and it'd better for mutual fund investor."

Up to yearend, the company will have a total assets worth IDR1.95 trillion coming from equity and EBA 01 and 02 worth totally IDR1.3 trillion, I/2009 bond worth IDR300 billion, and II/2009 bond scheme worth IDR350 billion. (Bisnis/21)

T-bond Issuance to be Suspended

http://jurnal-ekonomi.org/wp-content/uploads/2009/03/ledakan-utang-300x300.jpg

as published in Bisnis Indonesia daily newspaper
Wednesday, 18/11/2009 00:00 WIB
T-bond Issuance to be Suspended

JAKARTA: The government is going to suspend T-bond issuance this year as it has already met the target to raise IDR144.54 trillion in gross financing through the auction of three T-bond series worth IDR2.16 trillion.

Rahmat Waluyanto, Director General of Debt Management at the Department of Finance, revealed the government had been able to raise IDR2.16 trillion from the market through the issuance of T-bond series FR0031, FR0040, and FR0052 yesterday.

Although there was still 1.5 months left this year, there would be no more T-bond issued as the three series had been able to complete the fulfillment of the gross financing target of IDR144.54 trillion. "This is the last time since 100% of the target has been completed," he said yesterday.

At the T-bond issuance yesterday, the total bid received was IDR2.73 trillion. However, only IDR1.4 trillion was favored for the 11-year FR0031 series, IDR660 for the 16-year FR0040 series, and IDR104 billion for the 11-year FR0052 series.

In addition to rupiah-denominated bonds, the government has also issued three foreign-denominated bonds to patch up this year's deficit of IDR128.6 trillion or 2.4% of GDP. The three foreign-denominated bonds are global MTN (medium term notes) worth US$3 billion issued in February, global Islamic bond worth US$650 million issued in April, and Samurai Bond worth 35 billion yens issued in August.

Rahmat said the government was quite successful in its strategy of lowering yield by bolstering bond issuance earlier this year. "Such a measure enables us to control yield and prevent us from being controlled by the market."

Pursue target

An economist at the Institute for Development of Economic and Finance Aviliani viewed there had been an impression that the government only wanted to pursue financing target by bolstering bond issuances.

As a result, at the moment there had been competition for funds between the banking industry, which is facing liquidity problems, and the government, which offers huge yields.

An economist at Sustainable Development Indonesia Dradjad Hari Wibowo agreed, saying the maximum bond issuance was not matched by the parallel budgetary realization. As a result, there had always been budget left unabsorbed every year.

"The government's budgetary management is poor as the financing wheel doesn't match the wheels of spending and state revenues." (Bisnis/agi/21)

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)

Multifinance issued IDR3.5 trillion bonds: Many issuances taking place in semester I/2010

as published in Bisnis Indonesia daily newspaper
Tuesday, 17/11/2009 00:00 WIB
Multifinance issued IDR3.5 trillion bonds
Many issuances taking place in semester I/2010

JAKARTA: Multifinance company bond issuance next year is estimated to surpass this year bond issuance value of IDR3.5 trillion due to the total matured bonds worth IDR4.5 trillion.

Data of the IDX up to October shows the bond issuance value of multifinance company stood at IDR3.5 trillion or 18.31 percent as from the total bond issuance of all sectors worth IDR19.1 trillion.

VP Financial Institution Rating of PT Pemeringkat Efek Indonesia (Pefindo) Hendro Utomo said the multifinance sector bond issuance will bolster the total bond issuance next year. The bonds here are predicted to exceed the issuance of this yearend with the estimated value of IDR32 trillion.

"The dynamics of multifinance company bond issuance is absolutely done as they continue to disburse credit particularly next year when the economy has better outlook than this year," he said to Bisnis this week.

The maturing bonds next year stand at IDR10.94 trillion of which some IDR4.5 trillion bonds will have the due date at the same period.

There are some factors determining the growing bond issuance here.

First, the prospect of multifinance credit channeling will grow up along with the rising expectation of car and motorbike sales in automotive sector.

Second, with the possible rise of interest rate by semester II/2010, the bond issuance windows in semester I will be higher than that of remaining period next year to cut down the issuance cost.

The cost is set from the offered coupon to the investors. Besides, the issuance will be favored by the mounting lending interest rate as multifinance will have more aggressive credit expansion.

The interest rate influences new corporate bond issuance as it is based on the offered coupons to the investors which will use yield of the government bonds (SUN) which moves along with the lending rate.

Higher rate will lead to the mounting SUN yield and thus lifts up higher the bond coupon which consequently will spend mor cost to pay the bond coupon.

Third, the growing interest rate will not influence the bond issuance value. Hendro said the financing will be more aggressive and concentrate more on the issuance in semester I. The company in this sector will compete for the chance to issue bonds at the same period.

However, there is possibility that multifinance sector seeks other more effective and efficient option other than bond issuance through public offering, namely the bank loan and medium term notes issuance (MTN).

MTN issuance has shorter tenure and more efficient if compared to the conventional bonds cost.

Besides, the more issuance of MTN this year tends to lure investors noting that there are some investment managers that cover the closely issued notes and change them into mutual fund.

The MTN issuance in previous years was far less than this year. Bisnis records the trend here is marked by the same notes issuance by PT Federal International Finance (FIF) worth totally IDR1 trillion and by PT Astra Sedaya Finance IDR500 billion.

President Director of PT Adira Dinamika Multifinance Stanley Setia Atmaja predicted the bond issuance value next year from multifinance company could be even higher by 15-20 percent than the matured bonds next year worth IDR4.5 trillion. This is due possibly to the fact that the company fails to shift it to bank loans. (Bisnis/21/mts)

Manulife Manajemen targets growth at 20%

photo from:http://www.antarafoto.com/dom/prevw/grab.php?id=1243930195

as published in Bisnis Indonesia daily newspaper
Tuesday, 17/11/2009 00:00 WIB
Manulife Manajemen Targets Growth at 20%

JAKARTA: PT Manulife Aset Manajemen Indonesia targets to bolster the amount of fund it oversees by 20% to IDR27.3 trillion-IDR27.6 trillion for 2010, thanks to its larger number of customers.

President Director of Manulife Aset Manajemen Denny Rizal Thaher revealed the amount of fund the company had overseen until the end of October reached IDR22 trillion consisting of IDR8.7 trillion in mutual fund and IDR13.3 trillion in discretionary fund.

"Manulife Manajemen also plans to issue two equity funds next year," he said yesterday.

He added the company also targets to boost the number of customers by 20% from the current 53,000 customers.

To realize the target, he continued, the company would work together with publicly listed PT Bank Central Asia (BCA) in developing auto debit and joint account facilities to eye the retail customers of the private bank.

Those facilities, he informed, will make it easier for customers to transfer their funds from their BCA accounts to their mutual fund accounts, leaving manual transfer no longer necessary.

He explained the second program aimed to make it easier for parents to make investments for their children from their infancy to their adulthood at 21 years of age.

The mutual fund account will have two owners, namely the investor and the trustee. The account will belong to the investor once he or she can be considered an adult.

"In principle, each investment manager has to have direct selling channel to diversify distribution channels."

According to Denny, Manulife Aset Manajemen at the moment is an investment manager overseeing the largest discretionary fund portfolio in the mutual fund industry.

In the meantime, the total amount of fund it oversees ranks second largest among four investment managers, with Schroders Investment, Fortis Investments, and Mandiri Manajemen Investasi being the other three. (Bisnis/21)

Salim Ivomas bond coupon at 11.65%

as published in Bisnis Indonesia daily
Monday, 16/11/2009 00:00 WIB
Salim Ivomas bond coupon at 11.65%
Total corporate debt per May 2009 stood at IDR6 trillion

JAKARTA: PT Salim Ivomas Pratama set the bond coupon and sharia bond of I/2009 on the level of 11.65 percent with the booking up to last week remaining under the target of IDR1.25 trillion.

Bisnis resources said the emitter nomination was not willing to increase the coupon value of both securities so some potential investors dropped their booking.

"That is based on their finance profile. If the coupon grows up, it will change their business strategy , particularly the existing loan profile," said Bisnis resource yesterday.

The company will ensure the number of issuance and coupon worth today after setting the early coupon by end of last week.

With the coupon, the demand for bonds could be lower than the corporate targeted value.

"The market is good with a slightly higher coupon, there should have had more investors and the issuance amount could stand at IDr1.25 trillion or up to IDR1.5 trillion for both securities here," other resources added.

Bond and sharia bond issuances had potentially to rise up to IDr1.5 trillion from IDR1.25 trillion. The bond and sharia bond issuance value stands at IDR1 trillion and IDR250 billion.

On the last month public expose, the coupon of both bonds were set slightly higher by 175-225 bps above the FR0026 or 11.1-11.6 percent.

When asked, Director of Investment Banking of PT Danareksa Sekuritas Marciano Herman was not willing to give comment noting the ongoing process of bond issuance.

SVP Head of Debt Capital Markets of PT CIMB Securities Indonesia A. Siwiwardhani was not available for comment yesterday.

In the issuance of securities here, in addition to Danareksa Sekuritas and CIMB Securities, Salim Ivomas assigned four other securities firms to become underwriters, namely PT OSK Nusadana Securities Indonesia, PT Mandiri Sekuritas, and PT Kim Eng Securities.

Salim Ivomas plans to spend IDr1 trillion of the bond and sharia bond tender offer to restructure some of the short term debt. Besides, the company also need to use some IDr250 billion fund from the sharia bonds issuance for the firm capital expenditure in transportation.

The company plans to restructure most of the short term loans gained from some national banks. Based on the corporate finance report per May 2009, the company still has short term obligation worth IDr2.18 trillion and long term one is IDR3.85 trillion.

Following the bond issuance, the composition of long term debt is predicted to increase into 76 percent. (21)