Astra International capital expenditure is worth IDR5 trillion

as published in Binsis Indonesia daily newspaper
Friday, 04/12/2009 00:00 WIB
Astra International capital expenditure is worth IDR5 trillion

JAKARTA: PT Astra International Tbk allocates IDR4-5 trillion capital expenditure or equal to the allotted budget this year.

Senior Vice President Chief Corporate Communication of Astra International Arief Istanto said the capital expenditure is mostly absorbed by the subsidiary company focusing on coal mining, PT United Tractors Tbk.

"Next year capital expenditure for the group has more or less the same value of this year. United Tractors spent IDr4 trillion which has recently announced its US$400 million capital expenditure," he briefed the press yesterday.

Funding resource is attained from internal cash. But it is possible that the company will take external funding when the subsidiary firm needs additional expansion cost.

"If United Tractos intends to acquire new mining, we will later think about the external funding option," he said.

Yesterday the stock price of ASII rose 0.31 percent (IDR100 per share unit) into IDR32.650. The price to earning ratio (PER) was 14.18 times.

In the current year, the corporate stocks rose 209.48 percent so the market capitalization stood at IDR132.18 trillion.

Meanwhile, PT Unilever Indonesia Tbk allotted IDR400-600 billion capital expenditure next year for the routine corporate budget.

Corporate Secretary of Unilever Indonesia Franky Jamin said the company plans to use the fund for boosting the corporate production capacity and plant machinery maintenance.

"It is funded from internal cash," he said to press yesterday.

The company allotted higher capital expenditure than last year of IDR1 trillion due ot the brand acquisition action done. The company this year is predicted to grow by 10 percent at minimum.

As to Franky, the corporate sales growth is driven by the soaring sales volume instead of only the growing production goods price which is sold following the inflation rate.

The stock price has reached the expensive level, or IDR11, 850, but the company has not planned to have stock split yet.

The stock price at that level has made the stock price to earnings ratio (PER) of 25 times

Corporate net income is predicted to reach IDR2.86 trillion by end of the year and IDR3.38 trillions next yearend. (Bisnis/21)

Jasa Marga to Allocate IDR1.3 trillion Capex

as published in Bisnis Indonesia daily newspaper

Thursday, 03/12/2009 00:00 WIB

Jasa Marga to Allocate IDR1.3 trillion Capex

JAKARTA: Publicly listed PT Jasa Marga will allocate IDR3.1 trillion in capital expenditure (capex) next year for periodical routine financing, operational cost, and toll road capacity enhancement.

Corporate Secretary of Jasa Marga Okke Merlina revealed the company planned to get 50% of the capex or IDR1.55 trillion from banking loans.

"In the meantime, IDR650 billion will come form the remaining IPO funds and the rest IDR900 billion from equities," she told the press yesterday.

She explained the company this year only absorbed 50% of the targeted capex of IDR4.6 trillion due to delays in land acquisition and new toll road construction.

The company also targets its revenues at the yearend at IDR3.6 trillion, rising from IDR2.6 trillion as of the third quarter of 2009.

Last year, the company booked IDR3.3 trillion in revenues from 900 million transactions.

The company is also sounding other businesses outside the core businesses, namely the property and Cengkareng-Bandung optic fiber construction businesses.

Head of Finance Bureau at Jasa Marga Ronny Haryanto revealed the optic fiber would be developed on or around the company's existing road routes. The optic fiber, he said, aimed to link the company's facilities on the route.

However, he continued, the company was also reviewing the possibility of leasing the optic fiber networks to other parties to generate more revenues. According to him, the optic fiber networks started construction last year.

He added the company also had some rooms to seek bank loans as the company's debt to equity ratio (DER) was only still at 1.2, creating a chance for the company to borrow IDR16 trillion maximum.

Kalbe Farma

In the meantime, PT Kalbe Farma allocates IDR450 billion-IDR500 billion in capex next year, which will come from equities.

Director of Finance-Corporate Secretary of Kalbe Farma Vidjongtius exposed the fund would be allocated for routine expenditure, such as bolstering plant capacity, product research and development, machinery maintenance, and quality control.

Vidjongtius said the capex might increase from the initial target if the company next year planned to acquire brands or products.

The funding would be excluded from the merger and acquisition (M&A) plan. According to him, the company was also sounding external financing by, among others, issuing bonds worth IDR500 billion-IDR1 trillion.

"External financing will be needed if our M&A requires more than IDR300 billion."

Vidjongtius said the M&A was estimated to require at least IDR100 billion. (Bisnis/21)

Oto Multiartha to Issue IDR1.2 Trillion Bond: SMF Extends Bookbuilding Period

as published in Bisnis Indonesia daily newspaper

Thursday, 03/12/2009 00:00 WIB

Oto Multiartha to Issue IDR1.2 Trillion Bond

SMF Extends Bookbuilding Period

JAKARTA: PT Oto Multiartha increases its bond issuance from the previous target of IDR600 billion to IDR1.2 trillion.

"The bond has got effective statement from Bapepam-LK today [yesterday]," said President Director of PT HSBC Securities Indonesia Hari Bartolomeus Mantoro in his text message to Bisnis yesterday.

HSBC Securities and PT Standard Chartered Securities Indonesia are the ones underwriting the bond.

He revealed the bonds would consist of three series. The first bond (one-year tranche A) worth IDR200 billion would give a coupon of 9.8%, the second bond (two-year tranche B) worth IDR500 billion would offer a coupon of 11.25%, while the third bond (three-year tranche C) would worth IDR500 billion.

Director of Oto Multiartha Edi Suyitno recently said the company would play a role in car financing to meet a market share target of 8.2% for new cars.

For next year, he added, the total national car market was projected at 525,000 units, rising from 465,000 units this year.

Until the yearend, the company targets to book IDR400 billion in earnings. Until the third quarter of this year, Oto Multiartha was able to record IDR372.5 billion in earnings. In the meantime, the subsidiary of Sumitomo Corporation, which controls a 83.5% stake, last year was able to post IDR405 billion in earnings, soaring from IDR107 billion in 2007.

Edi added the surging equities also indicated the company' stronger financing performance. The company's equities until July 2009 reached IDR2.09 trillion, rising from IDR1.99 trillion from 2008.

The surging equities, he continued, were attributable to soaring earnings last year as well as to the fact that Sumitono Corporation together with PT Summit Auto Goup injected IDR360 billion in equities last year.

At the moment, he disclosed, the company charged an interest rate of 16-17%, lower than the previous 18%-19%. "The interest rate has been declining in the past two-three months, which also improve credit."

SMF Bond

On the other hand, PT Sarana Multigriya Finansial (SMF), which intends to issue second bond 2009 worth IDR350 billion, extends the bookbuilding period.

"We observe that the bond market is being volatile due to the Dubai World case and the flourishing bond issuance this year," said Corporate Secretary of SMF Eko Ratrianto.

SMF bond will be underwritten by PT Bahana Securities.

The company plans to use 90% of the funds raised from the bond issuance for the refinancing program and the rest for asset-backed securities securitized from BTN housing loans.

During the public expose, President Director of SMF Erica Soeroto told the company planned to lend IDR450 billion next year. "But, we are still waiting for approval from the shareholders."

The company also plans to market asset-backed securities mutual fund next year. (Bisnis/21/mts)

Bond value of Oto Multiartha swelling up

as published in Bisnis Indonesia daily newspaper

Tuesday, 01/12/2009 00:00 WIB

Bond value of Oto Multiartha swelling up

JAKARTA: Bond issuance value of PT Oto Multiartha has potential rise up to IDr1 trilion from early scheme of IDR600 billion due to the high demand from investors. Bond coupon offered to investors ranged from 9.75 to 12.75 percent.

"Their bond book building process is very good. The company will make it to public in couple of days," said an informed executive to Bisnis yesterday.

He said the bond issuance here has almost doubled oversubscription or nearly IDR1.2 trillion worth. The high demand is due to the relatively stable government bonds (SUN) with the bullish condition in the past two weeks.

Finance Director of Oto Multiartha Edi Suyitno said he was on leave so he could not confirm the information, and so was Operational Director of Oto Multiartha Rosalina Dhanudimuljo could barely provide confirmation. " I am on meeting," he said last night.

Director of PT Standard Chartered Securities Indonesia Agus Wicaksono conceded the company has set the coupon. But he directed the coupon query to emitter.

President Director of PT HSBC Securities Indonesia Hari Bartolomeus Mantoro said Oto Multiartha has still waited for effective statement given by the Capital Market and Finance Institutions Supervisory Agency (Bapepam-LK) which is scheduled Wednesday this week.

In addition to Standard Chartered Securities and HSBC Securities, bond emitter here also assigned PT Sinarmas Sekuritas as the underwriters. PT Bank Mandiri Tbk acts as the trustee boards and undewriting agents in the bond issuance. (Bisnis/21)

Bond Issuance May Reach IDR29 Trillion: Increase in Indonesia's CDS Predicted to only be Temporary

photograph shared from https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMLIsO5t8f4G0ybBsp-9NaoXKscU-RNCz56FsYdCTMVelVlEybXejQq8_5V_mNApWOokp0VRUfM1vr972SHPFopmtb_T0sAmPyLXzaRsTKO548-sdCtBXHaU_kkgUCy1_8jQt0xz4Tj24/s400/Dubai_-_United_Arabic_Emirates.jpg

as published in Bisnis Indonesia daily newspaper
Monday, 30/11/2009 00:00 WIB
Bond Issuance May Reach IDR29 Trillion
Increase in Indonesia's CDS Predicted to only be Temporary

JAKARTA: Corporate bond issuance next year is projected at IDR27 trillion-IDR29 trillion, rising 5%-10% from IDR26.5 trillion this year.

Data by Bisnis show the total amount of corporate bonds maturing next year will reach IDR10.94 trillion, while the amount of T-bonds maturing next year will hit IDR70.47 trillion.

Data by Indonesia Stock Exchange (BEI) expose the volume of rupiah-denominated bond and Islamic bond so far this year has reached IDR19.33 trillion. Approaching the yearend, there will be additional IDR7.13 trillion in bond, leading to a total issuance of IDR26.46 trillion this year.

"Bond and Islamic bond issuances next year will grow 5%-10% from this year as several companies will be interested in entering the bond market in line with economic growth," observed a corporate bond analyst at publicly listed PT Trimegah Securities Octavianus Bramantya last weekend.

President Director of PT Pemeringkat Efek Indonesia (Pefindo) Kahlil Rowter viewed the Dubai World debt crisis would not hugely impact the T-bond and corporate bond market in the country. However, he admitted the debt crisis would impact the global bond market for a certain period of time.

"The debt crisis will not affect Indonesia much nor bond issuance target next year, which is projected at IDR25 trillion - IDR30 trillion," he said.

Kahlil took example that in the first quarter of 2009, the global market condition, reflected from Indonesia's high credit default swap (CDS), didn't discourage issuers to issue bond nor dispirited investors.

He explained the increase in Indonesia's CDS in the past two days would not last long, despite his belief that there would be fund withdrawal from the emerging bond markets for a certain time.

The CDS of five-year rupiah-denominated Indonesian T-bonds surged from 202.21 on November 25 to 238.64 on November 27.

Head of Pricing at Pefindo Ronny Wicaksono predicted bond issuance would be flourishing in the first semester of 2010 since the benchmark interest rate was still above the level desired by investors.

Several issuers whose bonds will mature next year are Astra Sedaya Finance (IDR1.15 trillion), Federal International Finance (IDR855 billion), Apexindo Pratama Duta (IDR750 billion), BTN (IDR750 billion), Indosat (IDR640 billion), and Jasa Marga (IDR650 billion).

State Budget Financing
Director General of Debt Management at the Department of Finance Rahmat Waluyanto disclosed the government had prepared funds to service T-bonds that would mature next year. "We have allocated funds for T-bonds through the State Budget."

Rahmat added the Department of Finance was optimistic domestic and global T-bond issuances would attract investors, thanks to better rating outlooks as released by Moody's and S&P.

He continued several analysts viewed the Dubai bond crisis would shrink investment flow into emerging countries, which would be potential to affect Indonesia's T-bond prices.

Foreign investor ownership of T-bonds also surged to IDR104.88 trillion as of November 20 from IDR103.3 trillion as of November 13.

However, Fauzi Ichsan, an economist at Standard Chartered Bank, cited economic players started worrying about the follow-up impacts of the Dubai World debt crisis, leading to negative sentiments in the domestic market for a short term.

In the short-term, Indonesian market players would take a defensive position on worries the phenomenon was only the beginning of the worse debt crisis to come in many countries. (Bisnis/21/agi)

Multi Nitrotama eyes on US$20 million loans

as published in Bisnis Indonesia daily newspaper
Saturday, 28/11/2009 00:00 WIB
Multi Nitrotama eyes on US$20 million loans

JAKARTA: PT Multi Nitrotama Kimia eyes on US$20 million loans from local bank to finance the new plant of ammonium nitride construction and old plant capacity rise.

“The company has sought loan from local bank as standby loan if the corporate bond issuance fails to meet the set target,” said Finance and Administration Director of Multi Nitrotama Aulia M. Oemar to press this week.

The company has been establish pricing and book building of bonds and sharia bonds worth totally at IDR370 billion with A- rating. Some 85 percent securities issuance funds will be spent for additional construction of ammonium nitride plant in Cikampek with 100,000 metric tons capacities.

The bonds will be categorized into three series, the A series with 2 years tenure, B series with 3 years tenure, and C series with 5 years tenure.

As underwriter, the company is assisted by PT Trimegah Securities Tbk and PT Indo Premier Securities. PT Bank Mega Tbk acts as trusteeship board.

Aulia said formerly the plant could produced 3,700 metric tons of ammonium nitride per year. The former plant capacity is either planned to increase up to 40,000 metric tons per year.

The company has constructed the plant a month ago.

The securities bond prospectus also explains the company has purchased secondhand machinery worth US$2.97 million for the new plant with refurbishment. The company also plans to buy new machinery from the fund.

The company targets to have IDR1trillion corporate sales this year

Next year, the company has planned to buy 18 hectares plot of areas close to Samarinda, East Kalimantan, to build warehouse for ammonium nitride whose development cost US$2-3 million.

Besides, the company also set the capital expenditure worth US$53 million to construct plant and warehouse next year deriving from the bond issuance and corporate internal cash.

The market shares of this industry is 50 percent and with the plant construction, the firm is optimistically to expand the profit as it could cut down the importation budget.

To cover the mining industry demand, the company should import ammonium nitride in addition to the 37,000 metric tons of production. (21)

Telkom selecting 6 securities, related to their plans to issue IDR2 trillion bonds

as published in Bisnis Indonesia daily newspaper

Saturday, 28/11/2009 00:00 WIB

Telkom selecting 6 securities

It plans to issue IDR2 trillion bonds

JAKARTA: PT Telekomunikasi Indonesia (Telkom) Tbk has been conducting beauty contest to six securities as candidates for underwriter of IDR2 trillion bond issuance.

Some informed Bisnis resources said the emitter has done the selection process with six potential securities companies to become underwriter of bond issuance here.

“The invited securities companies include four state securities firms and two private ones two weeks ago,” said one of the resources this week.

Other resource said the state firms invited here include PT Danareksa Sekuritas, PT Mandiri Sekuritas, PT Bahana Securities, and PT BNI Securities.

The private firms potentially taking parts in the bond issuance here include PT Trimegah Securities Tbk and PT Andalan Artha Advisindo Sekuritas (AAA Securities).

Besides, the bond is possibly be included in sharia financing scheme. “So, the would be issued securities will likely be sharia bonds.”

Finance Director of Telkom Sudiro Asno conceded the company has been conducting a beauty contest.

But he could not provide details on the number and name of the invited securities companies.

Next year Telkom plans to seek external funding to cover 40 percent next year capital expenditure worth US$2 billion or IDR20 trillions. The state firm here prepares the issuance scheme of IDR2-3 trillion bonds in semester I/2009.

Director of BNI Securities Jimmy Nyo, President Director of AAA Securities Th. Andri Rukminto and Director Trimegah Securities Desimon admitted the request for beauty contest but they could barely confirm the amount of issuance due to early process.

Telkom this year is proven to have absorbed the vendor financing facility worth US$60 million or IDR600 billion from two overseas firms.

Sudiro said the company has got commitment for vendor financing totally worth US$400 million from two firms. Huawei provides US$300 million financing and ZTE US$100 million.

“We have so far spent some US$60 million noting that the absorption depends on the needs,” he said to press after working meeting with the Parliament’s Commission XI last Thursday.

Vendor financing is one of corporate strategies to cover capital expenditure this year worth about IDR17 trillion. The other funding option is bonds and bank loan. (21/Arif Gunawan S.) (redaksi@ bisnis.co.id)