Borneo & Harum Energy to have IPO: Mining firm gets right momentum to hit bourse

Friday, 05/02/2010 00:00 WIB

Irvin Avriano A.

for Bisnis Indonesia

Borneo & Harum Energy to have IPO: Mining firm gets right momentum to hit bourse

JAKARTA: Two holding coal mining firms, PT Borneo Lumbung Energi and PT Harum Energy, plan to hit the stock market in semester I/2010 targeting to tap some US$500-700 millions proceeds.

Some investment bankers said Borneo Energy, an affiliate company to the Renaissance Capital, and Harum Energy, mostly owned by Tanito Harum Group and mining business owner Kiki Barki, have assigned underwriters.

"Borneo Energi targets to tap some US$200 -US$300 million proceeds [or IDR1.87 -2.81 trillion], and Harum Energy US$300 -US$400 million [or IDR2.81 -3.74 trillion]," he said to Bisnis yesterday.

Borneo, with 100 percent share ownership of PT Asmin Koalindo Tuhup in Central Kalimantan, is the coking coal mining company which will sell 20-25 percent shares to market.

Harum Energy, possessing PT Tanito Harum, is the thermal coal company for power plant supply, is possibly to sell 30 percent shares to market in the IPO.

Borneo appointed CIMB Securities as the underwriter for domestic and regional markets which will be possibly assisted by Sinarmas Sekuritas.

The company is in process of underwriter selection to handle the IPO at international market. "It might go to the Morgan Stanley Asia Indonesia [currently chaired by President Director Andy Purwohardono, the former President Director of PT Danareksa Sekuritas]," he added.

When asked, I Wayan Gemuh, Head of Corporate Finance of CIMB Securities, could barely give any comment.

Hardianto, Borneo Director, said he had not been informed about the IPO here.

Bisnis resource said Borneo will use some of the IPO generated proceeds to increase the production capacity of 3.6 million tons into 5 million tons per year.

Asmini Tuhup now produces 2.4 million tons of coal per year. It has been processing the purchase of supplementary equipment and improving infrastructure to bolster the capacity of 3.6 million per year before August this year.

"The IPO fund will later be allotted to pay debt to the local and overseas banks consortium," he said.

The coking coal produced by Asmin Tuhup is 8,200 kcal and the commodities here go to export markets. The hard coking coal price now is US$175 per ton. The total of resources quantity of the mining is 240 million tons of coal.

Harum Energy appointed four underwriters, namely Goldman Sachs, Deutsche Securities, Mandiri Sekuritas, and Ciptadana Securities. Goldman and Deutsche will later help sell the shares to overseas market, and Mandiri and Ciptadana for domestic markets.

President Director of Ciptadana Ferry Budiman Tanja was not available for comment on the IPO.

Director of Investment of Bank Mandiri Sekuritas Iman Rachman declined to comment. "It'd better to ask about it to the emitter."

Harum Energy last year sought US$200 million loan to refinance debt and working capital. Harum had appointed DBS Group Holdings Ltd to seek the loans.

Analyst of PT AAA Sekuritas Herman Koeswanto said this year is deemed the right momentum for mining and energy firms to have IPO amidst the high stock valuation of the sector.

"With high stock valuation here, new emitter has great potential to have either high valuation. If they have fundamental capacity equals to the emitter at the bourse now, the valuation will surely be lifted up," he said.

Analyst of PT Danareksa Sekuritas Metty Fauziah said the coal price in 2010 stood at the level of US$85 per metric ton following the global economy recovery.

"Coal demand from China remains high as most of their power plants need coal. The second phase of 10,000 MW projects in Indonesia also uses coal." (Bisnis/iaa/ags/wiw)

KPD and RDPT's regulation will launch next week

BI/capital market

3/2/10

By Irvin Avriano A.

for Bisnis Indonesia

KPD and RDPT's regulation will launch next week

JAKARTA: Most of the fund management players in the capital market will take an ease for a while.

Capital Market and Financial Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) is intended to allow matured discretionary fund (kontrak pengelolaan dana/KPD) to be extended until the new regulations approved by them.

The maturity is allowed to be extended until the approval of new regulations about the fancy-capital-market-product is formed.

Bapepam-LK Chairman Ahmad Fuad Rahmany said the capital market authority is make a serious effort to establish new rules of the discretionary fund and the bilateral KPD this month.

"We will allow a contract which is due this year to be extended, discussion of the new rules is have not finished yet, hopefully soon, this February when he could," said Fuad to the press today.

Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto, who is in charge of mutual fund and investment manager, said the stock market authority plans to issue draft of new regulations that will legislate the KPD next week.

He explained the capital market authority also plans to revise the rules on private equity fund (reksa dana penyertaan terbatas/RDPT) a long with the KPD's new regulations. Revisions, he said, including the discourse to lower the minimum investment on that type of product.

"The plan is next week to speed up the process."

He explained that the regulations' draft would also accompanied the publication of the draft revision of the RDPT, The authority has discoursed that seemed will lower the minimal limit of investment to Rp1 billion from previously Rp5 billion.

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."

Manulife's candidate director do not pass fit & proper test

Irvin Avriano A.

Bisnis Indonesia

Tuesday, 02/02/2010

Manulife's candidate director do not pass fit & proper test

One of the candidate director of PT Manulife Aset Manajemen Indonesia does not pass fit and proper test (fit and proper test) because of lack of experience leading financial companies.

Some market sources said the Chief Investment Capital Stock (Head of Equity) Manulife Aset Manajemen Nicolaus Oentung (Nico) does not pass the fit and proper test conducted by the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) two weeks ago.

"Nico is prepared to replace two directors who filed the resignation, Denny Rizal Thaher and Li Ming Suryaputra since December, but Nico did not qualify," said a source last week.

Other sources explain the reason Nico don't pass the fit and proper test held by Bapepam-LK is caused by a lack of experienced as director in investment managers company who had been required as the capital market authority.

He explained besides Nico who had a career as an analyst at PT CLSA Indonesia, Manulife Aset Manajemen also filed Eli Djurfanto as the new candidate director. Eli had a career at PT Kresna Garaha Sekurindo Tbk, a director at PT ABN Amro Aset Manajemen, and the Royal Bank of Scotland Plc Indonesian branch.

When confirmed, Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto, who in charge of mutual fund and investment manager, confirmed the news, but can't explain the details of what was cause of Nico's failed to pass fit & proper.

"Indeed he does not pass the fit and proper, we not rejected him, the reason is because he is being not in accordance with our rules, please check the details directly to the companies."

He said the company which is subsidiary of PT Manulife Indonesia was still allowed to sell mutual funds this month because one director who had resign, Suryaputra Li Ming, was still extending to stay from the company.

Manulife Aset Manajemen got a sanction of suspension of sales of new units of mutual funds since the beginning of January for two weeks due to the resignation of Denny Thaher and Li Ming Suryaputra, leaving only Raymond Gin as a director and chief investment officer.

The withdrawal of two of the three directors that made the company violated the Law No.40/2007 on Limited Liability Companies and strengthened by the rule of Bapepam-LK No.V.A.1 about Securities Company Licensing.

He explained previously, Li Ming was sent a letter of resignation in December and will last in the company until the end of January, so the company must find a replacement for Li Ming before end of this month.

However, Djoko continued, Li Ming's resignation pending make the company still able to sell mutual fund new units.

By Irvin Avriano A.

Retail sukuk sales surpassing target: Bank Mandiri rake up IDR800 billion

Irvin Avriano Arief

for Bisnis Indonesia

Retail sukuk sales surpassing target: Bank Mandiri rake up IDR800 billion

Sales of SR002 retail sukuk up to the past second week reached IDR3.2 trillion or exceeded the target of IDR3 trillion.

Director General for Debt Management Rahmat Waluyanto said with the achievement, the government had allowed some sales agents to increase their sales indicative target.

"The sales up to Friday reached IDR3.2 trillion. There was upsize last week. we will see the track record next week of each agent and who will come first," he said via SMS to Bisnis yesterday.

Wealth Management Group Head of PT Bank Mandiri Tbk Inkawan D. Jusi said the company has got SR002 demand above the earlier target of IDR800 billion up to last week.

"We have got upsize approval at slightly under IDR1.5 trillion," he said yesterday.

The company expected the sales of SR002 this year could give 20 percent new investors from the whole retail investors of the state bank here.

Inkawan said in general bank and Bank Mandiri does not worry about the decreasing potential number of bank investors dealing with the move from bank products to government instrument.

Selling SR002 or other government investment instrument, the company did not lead the major depositor to move to the government retail product. The investor interest to the instrument is due purely to the government yield.

"There is no worry about the deposit product or reduced deposit noting that every saels of government instrument at our bank will increase our investors."

The government set the yield of SR002 government sharia bond retail with three years tenure at the level 8.7 percent offered from January 25 to February 5, 2010.

Based on Bloomberg data, the yield here is above the FR33 at 7.95 percent with March 2013 due date.

The FR33 series price last week stood at 112.31 percent or slightly dropped if compared from the previous day of 112.35 percent.

Head of Retail of PT Danareksa Sekuritas Sujadi Darmotinojo was optimistic the company target of IDR300 billion will be reached this week despite the only IDR50 billion sales recorded last week. "The securities company usually books by end of sales period."

The company targeted mutual fund investor and the existing investors as the major basis of SR002 sales.

The government issued retail sukuk to finance the State Budget. Up to January 26, the total foreign ownership of government bonds stood at IDR584.7 trillion with the total ownership of overseas investors of IDR114.52 trillion or rose IDR4.99 trillion from IDR109.53 trillion on January 8. (Bisnis/iaa/rni)

CPRO bond negotiation not finalized yet

Irvin Avriano Arief

for Bisnis Indonesia

CPRO bond negotiation not finalized yet

PT Central Proteinaprima Tbk still seeks approval for bond restructuring worth US$325 million with mostly bond holder investors following the suspended bond coupon payment worth US$17 million.

Corporate Secretary of CP Prima Albert Sebastian said the bond holder representatives have tried to get signature from other bond holders to seek approval from more than 50 percent of investors.

"Now the standstill agreement requirement has been agreed and signed by the representative from some bond holders, but it fails to represent more than 50 percent of the outstanding bonds," he said in statement yesterday.

The failed bond coupon payment was issued by the subsidiary firm of CP Prima, Blue Oceans Pte Ltd. The standstill period will start form the effective standstill agreement up to the achievement of some standstill regulation.

Albert of the bond holders has not had any objection or legal suit from the bond holders following the unpaid bond coupon up to the extension.

"If the 30 days remedy period ends and bond holder fails to meet the requirements as stipulated by the agreement, the bond issuer is deemed fail," he said.

The company has got waiver of default cross clause from domestic bank.

IDX suspended CP Prima stock exchange yesterday due to the rating downgrade by Fitch Ratings last week.

"We had the suspension due to the downgraded rating by the Fitsch. So, we gave suspension while asked their clarification," said IDX company assessment director Eddy Sugito.

The downgraded issuer default rating (IDR) on the long term global bonds was done by Fitch Ratings to the emitter with failure dealing with the default of CP Prima subsidiary firm, Blue Ocean Resources Pte Ltd. the rating was cut down to RD from C level.

"The status of CP Prima obligation fulfillment to BNI is deemed well run. CP Prima problem concerned with the obligation fulfillment to the bond holder."

BNI provided L/C facility and loans worth totally IDR390.07 billion. (Bisnis/ags/mmh/iaa)