JAKARTA -
Indonesia's state oil and gas firm Pertamina signed on Friday syndicated loans worth $400 million and 3 trillion rupiah ($302.6 million) with local and foreign banks to fund upstream and downstream projects.
The dollar loan involves 16 banks, including Citigroup (C.N) unit Citibank NA, Bank of Tokyo-Mitsubishi UFJ (8306.T) and Sumitono Mitsui Banking Corporation (8316.T), a statement from local lender PT Bank Mandiri (BMRI.JK) said.
Citigroup is lead arranger for the loan.
"We believe this loan facility can speed up Pertamina's expansions and business developments in the future, in line with the strategic target set by the company," Karen Agustiawan, Pertamina's president director, said in a statement.
The $400 million loan has a maturity of three years and would pay 338 basis points above the London inter-bank offered rate (LIBOR), Pertamina Finance Director Ferederick Siahaan said.
Mandiri is lead arranger for the rupiah loan and will lend 1.25 trillion rupiah, while 750 billion comes from PT Bank Negara Indonesia (BBNI.JK), 500 billion rupiah from PT Bank Rakyat Indonesia (BBRI.JK) and 500 billion from PT Bank Central Asia (BBCA.JK).
Siahaan told reporters Pertamina planned to spend 22 trillion rupiah on capital expenditure in 2009, with 65 percent allocated for upstream activities and 35 percent for downstream. The firm is estimated to have invested 17 trillion rupiah in 2008.
"There are many Pertamina projects that need to be financed, including upstream and downstream. Upstream projects include Cepu and the offshore North West Java block," he said.
Pertamina has a 45 percent stake in the Cepu block in East Java, which will become one of Indonesia biggest oil projects with reserves of around 600 million barrels.
Exxon Mobil (XOM.N) has another 45 percent and regional governments hold the remaining 10 percent in Cepu.
Siahaan also said funds were needed to pay for preparations for a new refinery in West Java. Pertamina has said it plans to build a new refinery with a capacity of 150,000 barrels per day (bpd) in a join venture with Iran and Malaysia in West Java. Construction is expected to start next year.
Siahaan also said Pertamina was considering issuing bonds in 2010 as part of its financing plans, but he gave no details.
The state oil firm, which is under political pressure to help boost the country's flagging oil production, has said it aims to lift its oil output by about 10 percent to 171,000 barrels per day this year, up from 156,000 bpd in 2008.
Pertamina also has a long-term target of boosting refining capacity by 700,000 bpd from the current 1 million bpd at its nine refineries. The state oil firm's nine refineries have a combined capacity of around 1 million barrels per day (bpd). But they only supply 70 percent of domestic oil product consumption, and 30 percent comes from imports.
Efforts to build new refineries have stalled in recent years, with potential investors saying the returns are not favourable enough.
Friday, July 31, 2009
Indonesia Hot Stocks-Bumi shares up following convertible bond
JAKARTA -
Shares in Indonesia's biggest coal producer, PT Bumi Resources Tbk (BUMI.JK), jumped by as much as 18.6 percent on Friday, after a special purpose vehicle owned by the firm raised $375 million in a convertible bond offering.
Evercoal Resources has raised almost double the original target of $200 million from the sale of the five-year bonds which are guaranteed and transferable to Bumi. The bonds have a coupon of 9.25 percent.
Shares in Bumi ended up 12.37 percent at the close of the first session, outperforming the broader market .JKSE which ended up 0.89 percent.
A trader in Jakarta, who declined to be identified by name, said the increase in the size of the bond issue reflected increasing risk appetite, at a time when interest in Indonesia has picked up.
Bumi's share price has almost trebled so far this year, while Indonesia Composite Index has risen about 71 percent. (31 July 2009)
Shares in Indonesia's biggest coal producer, PT Bumi Resources Tbk (BUMI.JK), jumped by as much as 18.6 percent on Friday, after a special purpose vehicle owned by the firm raised $375 million in a convertible bond offering.
Evercoal Resources has raised almost double the original target of $200 million from the sale of the five-year bonds which are guaranteed and transferable to Bumi. The bonds have a coupon of 9.25 percent.
Shares in Bumi ended up 12.37 percent at the close of the first session, outperforming the broader market .JKSE which ended up 0.89 percent.
A trader in Jakarta, who declined to be identified by name, said the increase in the size of the bond issue reflected increasing risk appetite, at a time when interest in Indonesia has picked up.
Bumi's share price has almost trebled so far this year, while Indonesia Composite Index has risen about 71 percent. (31 July 2009)
Monday, July 27, 2009
BANK RAKYAT INDONESIA SET TO ACQUIRE BANK BUKOPIN
JAKARTA-
PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) said it was eyeing several banks including PT Bank Bukopin (JSX:BBKP) to support its plans to consolidate its business in Indonesia's retail sector.
Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.
Discussion is in progress on acquisition of Bank Bkopin, which is partly owned by the government, Basir was quoted as saying by the newspaper Jakarta Globe.
A source at the office of the state minister for state enterprises said BRI, Indonesia's second largest bank in assets, was set to finalize the acquisition of Bukopin by the end of this year.
PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) said it was eyeing several banks including PT Bank Bukopin (JSX:BBKP) to support its plans to consolidate its business in Indonesia's retail sector.
Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.
Discussion is in progress on acquisition of Bank Bkopin, which is partly owned by the government, Basir was quoted as saying by the newspaper Jakarta Globe.
A source at the office of the state minister for state enterprises said BRI, Indonesia's second largest bank in assets, was set to finalize the acquisition of Bukopin by the end of this year.
Thursday, July 16, 2009
BANK RAKYAT INDONESIA EYEING PT BANK BUKOPIN
JAKARTA-
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
DBS Bank Targets Local Indonesian Bank
One of Asian top banks, DBS, will expand in Indonesia, The largest Singapore-based bank will also acquire a local bank.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
BRI SAYS MAY BUY STAKE IN BUKOPIN
JAKARTA-
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Indonesia's Bank Danamon Q2 net profit down 20 pct
JAKARTA -
Indonesia's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), on Thursday reported a 20 percent drop in second-quarter net profit. The lender, controlled by a consortium which includes Singapore's state investor Temasek Holdings [TEM.UL] and Deutsche Bank (DBKGn.DE), said net profit for April-June fell to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. ($1 = 10,095 rupiah)
Indonesia's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), on Thursday reported a 20 percent drop in second-quarter net profit. The lender, controlled by a consortium which includes Singapore's state investor Temasek Holdings [TEM.UL] and Deutsche Bank (DBKGn.DE), said net profit for April-June fell to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. ($1 = 10,095 rupiah)
Indonesia banks report profits, loan growth targets
Danamon Q2 net profit down 20 pct to 477 bln rupiah
* Danamon Q2 net interest income up 25 percent
* BNI Q2 net profit more than doubles
* BNI Q2 net interest income up 19 percent
* BNI revises loan growth target to 14 pct from 16-18 pct
JAKARTA -
Two Indonesian banks on Thursday reported profits for the second quarter but indicated that the lending environment in Southeast Asia's biggest economy remains difficult amid a global economic slowdown.
The country's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), said second-quarter net profit fell 20 percent to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago, citing the high cost of funds and credit.
"In the first half 2009 compared to first half 2008 there was a drop mainly because of high cost of funds we experience in the first quarter of this year and also high cost of credit across the banking sector in indonesia," said Danamon's President Director Sebastian Paredes.
Net interest income in the second quarter climbed 25 percent to 2.345 trillion rupiah from 1.88 trillion rupiah a year earlier.
The lender reported a gross non-performing loan (NPL) ratio of 3.5 percent in the January-June period, compared to 2.3 percent a year ago.
PT Bank Negara Indonesia, the fourth-largest lender, said net profit doubled in the second quarter but it revised its loan growth target for 2009 down to 14 percent, from a previous forecast of 16-18 percent, saying that first-quarter lending was not as high as expected.
"In the first quarter we did not see a pick up in lending so we take a more conservative figure of 14 percent until the end of 2009," said President Director Gatot Suwondo in a news conference.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. They expect BNI to post a net profit of 2.219 trillion rupiah, up from 1.222 trillion last year. ($1 = 10,095 rupiah)
* Danamon Q2 net interest income up 25 percent
* BNI Q2 net profit more than doubles
* BNI Q2 net interest income up 19 percent
* BNI revises loan growth target to 14 pct from 16-18 pct
JAKARTA -
Two Indonesian banks on Thursday reported profits for the second quarter but indicated that the lending environment in Southeast Asia's biggest economy remains difficult amid a global economic slowdown.
The country's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), said second-quarter net profit fell 20 percent to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago, citing the high cost of funds and credit.
"In the first half 2009 compared to first half 2008 there was a drop mainly because of high cost of funds we experience in the first quarter of this year and also high cost of credit across the banking sector in indonesia," said Danamon's President Director Sebastian Paredes.
Net interest income in the second quarter climbed 25 percent to 2.345 trillion rupiah from 1.88 trillion rupiah a year earlier.
The lender reported a gross non-performing loan (NPL) ratio of 3.5 percent in the January-June period, compared to 2.3 percent a year ago.
PT Bank Negara Indonesia, the fourth-largest lender, said net profit doubled in the second quarter but it revised its loan growth target for 2009 down to 14 percent, from a previous forecast of 16-18 percent, saying that first-quarter lending was not as high as expected.
"In the first quarter we did not see a pick up in lending so we take a more conservative figure of 14 percent until the end of 2009," said President Director Gatot Suwondo in a news conference.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. They expect BNI to post a net profit of 2.219 trillion rupiah, up from 1.222 trillion last year. ($1 = 10,095 rupiah)
IMF asks Indonesian central bank to stop rates decrease
JAKARTA-
The International Monetary Fund (IMF) suggested the Indonesian central bank, Bank Indonesia (BI), to leave the regime of interest rates decrease policy starting from the second semester this year following the expectation of increasing commodity prices and improving demand in line with the recovery of the world's economy.
Milan Zavadjil, the agency's Chief Representative for Indonesia, said that the central bank's approach should be careful ahead of the end of the year. He said that further interest rates cuts were irrelevant anymore with the current condition.
He argued that the big monetary stimulus channeled to the banking system would eventually show its impact. In the same time, high level liquidity should be handled with proper policies.
"We believe that the BI has a limited room to further cut rate seven though inflation pressure has been receding lately and we see rupiah appreciation," he told the daily on Monday.
In the World Economic Outlook (WEO) Update released by the agency last week, countries were considered starting to get out of the worst economic crisis since the World War II. However, the process to recovery was predicted to go slow.
In the report, improving commodity prices and demand in line with economic recovery in advanced nations lately were predicted to provide pressure to the world's inflation next year.
Generally, developing countries were suggested to lower their interest rates if their have low rates of inflation. However, there should be some careful considerations to avoid disruption in foreign exchange rates and capital outflow.
According to Zavadjil, further decreasing interest rates were not suitable for Indonesia anymore. "The Indonesian economy is starting to grow rapidly. Besides, there are challenges from increasing commodity prices that could contribute to acceleration on inflation speed," he said.
Since December 2008 to July 2009, the BI had been reducing interest rates by 275 basis points to 6.75 percent currently as a response of decreasing inflation speed. In July 2009, year-on-year inflation was recorded at 3.65 percent.
The International Monetary Fund (IMF) suggested the Indonesian central bank, Bank Indonesia (BI), to leave the regime of interest rates decrease policy starting from the second semester this year following the expectation of increasing commodity prices and improving demand in line with the recovery of the world's economy.
Milan Zavadjil, the agency's Chief Representative for Indonesia, said that the central bank's approach should be careful ahead of the end of the year. He said that further interest rates cuts were irrelevant anymore with the current condition.
He argued that the big monetary stimulus channeled to the banking system would eventually show its impact. In the same time, high level liquidity should be handled with proper policies.
"We believe that the BI has a limited room to further cut rate seven though inflation pressure has been receding lately and we see rupiah appreciation," he told the daily on Monday.
In the World Economic Outlook (WEO) Update released by the agency last week, countries were considered starting to get out of the worst economic crisis since the World War II. However, the process to recovery was predicted to go slow.
In the report, improving commodity prices and demand in line with economic recovery in advanced nations lately were predicted to provide pressure to the world's inflation next year.
Generally, developing countries were suggested to lower their interest rates if their have low rates of inflation. However, there should be some careful considerations to avoid disruption in foreign exchange rates and capital outflow.
According to Zavadjil, further decreasing interest rates were not suitable for Indonesia anymore. "The Indonesian economy is starting to grow rapidly. Besides, there are challenges from increasing commodity prices that could contribute to acceleration on inflation speed," he said.
Since December 2008 to July 2009, the BI had been reducing interest rates by 275 basis points to 6.75 percent currently as a response of decreasing inflation speed. In July 2009, year-on-year inflation was recorded at 3.65 percent.
INDONESIAN BANKS MAY CUT INTEREST RATES TO 10%
JAKARTA - Banks could cut their corporate credit interest rates to as low as 10 per cent in the second half of this year to follow the lead by the central bank, a senior banker said.
The steady cut in Bank Indonesia benchmark interest rate (BI Rate) and improving economic condition would allow banks to offer cheaper credits, Sudargo Sudaryanto, the corporate director of state lender Bank Rakyat Indonesia (BRI) (JSX:BBRI) said.
Currently the interest rate on corporate credit offered by BRI ranges from 12 per cent-23 per cent, Sudargo said.
In the past several months BRI already cut its interest rates by 50 basis points every month, he said, adding, the bank hopes to be able to continue the policy to encourage borrowers.
The bank has large undisbursed loans, he was quoted as saying by the newspaper Investor Daily without giving figure.
Meanwhile, Krishna Suparto, corporate director of PT Bank Negara Indonesia (BNI) (JSX:BBNI), another state lender, said if the BI Rate is cut further to 6 per cent from 6.75 per cent at present, BNI would be able to offer cheaper credit at an interest rate of 10 per cent.
The steady cut in Bank Indonesia benchmark interest rate (BI Rate) and improving economic condition would allow banks to offer cheaper credits, Sudargo Sudaryanto, the corporate director of state lender Bank Rakyat Indonesia (BRI) (JSX:BBRI) said.
Currently the interest rate on corporate credit offered by BRI ranges from 12 per cent-23 per cent, Sudargo said.
In the past several months BRI already cut its interest rates by 50 basis points every month, he said, adding, the bank hopes to be able to continue the policy to encourage borrowers.
The bank has large undisbursed loans, he was quoted as saying by the newspaper Investor Daily without giving figure.
Meanwhile, Krishna Suparto, corporate director of PT Bank Negara Indonesia (BNI) (JSX:BBNI), another state lender, said if the BI Rate is cut further to 6 per cent from 6.75 per cent at present, BNI would be able to offer cheaper credit at an interest rate of 10 per cent.
Friday, July 10, 2009
BNY Mellon, Danamon face $4 bln Indonesian suit
JAKARTA/SINGAPORE, July 10 (Reuters) - Bank of New York Mellon (BK.N) and Indonesia's Bank Danamon (BDMN.JK) are being sued for $4 billion in Indonesia in a dispute between international bondholders and the owner of a shrimp firm, Indonesian court documents show.
The dispute highlights the difficulties investors often face in Indonesia in enforcing their rights and comes as at a sensitive time. Many foreign investors have been increasing their exposure to the country on the back of strong growth and expectations of continued political stability following the re-election of President Susilo Bambang Yudhoyono this week.
The case involves a group of international investors who bought a $200 million bond issue, and the banks who acted as the trustee and security agent for the debt. The bonds were issued in 2007 by Red Dragon, controlled by Thailand's powerful Jiaravanon family.
The dispute has pitted the investors and banks against Red Dragon and three other firms controlled by the Jiaravanon family, all of which own stakes in Indonesian shrimp exporter PT Central Proteina Prima (CP Prima) (CPRO.JK), according to stock exchange records dating from the time of the bond issue.
The other three companies -- Regent Central International, Charm Easy and PT Surya Hidup Satwa (SHS) -- jointly backed Red Dragon's bond by pledging their shares in CP Prima to back the issuance. Red Dragon and these companies together controlled 70.3 percent of CP Prima, according to court documents seen by Reuters.
The dispute escalated last year when the value of CP Prima's shares and bonds plunged. Attempts to restructure the debt failed and bond holders ordered Bank of New York Mellon, the trustee, and PT Bank Danamon, the security agent, to transfer some of the shares held as collateral to the bondholders, sparking several lawsuits.
According to a press statement issued by the bondholders' representative, about 12 percent of the shares in CP Prima have been transferred and the transfer of the remaining 58 percent has begun.
In the latest twist to the saga, the four CP Prima shareholders have filed lawsuits in the central Jakarta district court against Bank of New York Mellon and Bank Danamon.
Each company claimed $1 billion in damages for transferring some of the shares held as collateral to Red Dragon bondholders, bringing the total compensation to $4 billion.
In court documents seen by Reuters, the four companies said both Bank of New York Mellon and Danamon "have committed torts through the execution of shares in a manner that is against the law". Fransiska Oei, Danamon director, said in a statement to Reuters that Danamon had received lawsuits from three parties: Red Dragon Group Pte Ltd, PT Surya Hidup Satwa and Regent Central International Limited.
"Danamon will study the lawsuits and in time will deliver its right of reply to the court. Related to the lawsuits, we need to convey that Danamon has acted in accordance to its roles and responsibility as the security agent which was appointed by Bank of New York Mellon," she said in the statement.
In June 2007, Red Dragon, a Singapore special purpose vehicle controlled by the Jiaravanon family, issued the $200 million, 2 percent secured exchangeable bonds due 2010 to a group of international investors.
At the time, Red Dragon owned 11.9 percent of CP Prima and pledged that CP Prima stake against the bond. Three other entities connected to the Jiaravanon family also pledged CP Prima shares for the bond offering.
The entities -- SHS, Regent Central, and Charm Easy -- owned a combined 58.4 percent of CP Prima, so the total amount of protection the group was offering on the bond equaled 70.3 percent, according to the court legal documents seen by Reuters.
CP Prima's stock went from 760 rupiah per share in July 2007 to 160 rupiah in Sept. 2008, knocking down the value of the bonds in the process.
What incensed the bondholders was an initiative late last year to embark on a rights offering, or an issue of new stock to existing shareholders that raises money for the company.
Bondholders argued that the rights issue would dilute CP Prima's shareholdings and therefore dilute protection against the Red Dragon bond.
In April 2009, the bondholders fought back, instructing the trustee to accelerate bond payments and to commence enforcement actions over the offshore collateral by seizing funds held by Red Dragon in offshore bank accounts.
Bank of New York declined to comment for the story.
Negotiations to restructure the bonds failed, and on May 12, the lawsuits began to fly.
Red Dragon and Pertiwi also filed claims in England against Bank of New York as Trustee and Bank Danamon as Security Agent -- the two entities acting on behalf of the bondholders, another legal document seen by Reuters showed.
The dispute highlights the difficulties investors often face in Indonesia in enforcing their rights and comes as at a sensitive time. Many foreign investors have been increasing their exposure to the country on the back of strong growth and expectations of continued political stability following the re-election of President Susilo Bambang Yudhoyono this week.
The case involves a group of international investors who bought a $200 million bond issue, and the banks who acted as the trustee and security agent for the debt. The bonds were issued in 2007 by Red Dragon, controlled by Thailand's powerful Jiaravanon family.
The dispute has pitted the investors and banks against Red Dragon and three other firms controlled by the Jiaravanon family, all of which own stakes in Indonesian shrimp exporter PT Central Proteina Prima (CP Prima) (CPRO.JK), according to stock exchange records dating from the time of the bond issue.
The other three companies -- Regent Central International, Charm Easy and PT Surya Hidup Satwa (SHS) -- jointly backed Red Dragon's bond by pledging their shares in CP Prima to back the issuance. Red Dragon and these companies together controlled 70.3 percent of CP Prima, according to court documents seen by Reuters.
The dispute escalated last year when the value of CP Prima's shares and bonds plunged. Attempts to restructure the debt failed and bond holders ordered Bank of New York Mellon, the trustee, and PT Bank Danamon, the security agent, to transfer some of the shares held as collateral to the bondholders, sparking several lawsuits.
According to a press statement issued by the bondholders' representative, about 12 percent of the shares in CP Prima have been transferred and the transfer of the remaining 58 percent has begun.
In the latest twist to the saga, the four CP Prima shareholders have filed lawsuits in the central Jakarta district court against Bank of New York Mellon and Bank Danamon.
Each company claimed $1 billion in damages for transferring some of the shares held as collateral to Red Dragon bondholders, bringing the total compensation to $4 billion.
In court documents seen by Reuters, the four companies said both Bank of New York Mellon and Danamon "have committed torts through the execution of shares in a manner that is against the law". Fransiska Oei, Danamon director, said in a statement to Reuters that Danamon had received lawsuits from three parties: Red Dragon Group Pte Ltd, PT Surya Hidup Satwa and Regent Central International Limited.
"Danamon will study the lawsuits and in time will deliver its right of reply to the court. Related to the lawsuits, we need to convey that Danamon has acted in accordance to its roles and responsibility as the security agent which was appointed by Bank of New York Mellon," she said in the statement.
In June 2007, Red Dragon, a Singapore special purpose vehicle controlled by the Jiaravanon family, issued the $200 million, 2 percent secured exchangeable bonds due 2010 to a group of international investors.
At the time, Red Dragon owned 11.9 percent of CP Prima and pledged that CP Prima stake against the bond. Three other entities connected to the Jiaravanon family also pledged CP Prima shares for the bond offering.
The entities -- SHS, Regent Central, and Charm Easy -- owned a combined 58.4 percent of CP Prima, so the total amount of protection the group was offering on the bond equaled 70.3 percent, according to the court legal documents seen by Reuters.
CP Prima's stock went from 760 rupiah per share in July 2007 to 160 rupiah in Sept. 2008, knocking down the value of the bonds in the process.
What incensed the bondholders was an initiative late last year to embark on a rights offering, or an issue of new stock to existing shareholders that raises money for the company.
Bondholders argued that the rights issue would dilute CP Prima's shareholdings and therefore dilute protection against the Red Dragon bond.
In April 2009, the bondholders fought back, instructing the trustee to accelerate bond payments and to commence enforcement actions over the offshore collateral by seizing funds held by Red Dragon in offshore bank accounts.
Bank of New York declined to comment for the story.
Negotiations to restructure the bonds failed, and on May 12, the lawsuits began to fly.
Red Dragon and Pertiwi also filed claims in England against Bank of New York as Trustee and Bank Danamon as Security Agent -- the two entities acting on behalf of the bondholders, another legal document seen by Reuters showed.
Bank Ekspor Indonesia to sign $210 mln syndicated loan
SINGAPORE -
Bank Ekspor Indonesia will sign a $210 million syndicated loan on Friday to help refinance the Indonesian lender's loan and support future export financing, Bank Mandiri, one of its mandated lead arrangers & bookrunners, said.
Bank Mandiri (BMRI.JK), Indonesia's largest bank by assets, contributed the biggest portion of that syndicated loan by lending $35 million to Bank Ekspor, according to a statement.
A total of 16 banks participated in that syndicated loan, including Bank of Tokyo-Mitsubishi UFJ, Oversea-Chinese Banking Corporation (OCBC.SI) and Krung Thai Bank KTB.BK.
Bank Ekspor Indonesia will sign a $210 million syndicated loan on Friday to help refinance the Indonesian lender's loan and support future export financing, Bank Mandiri, one of its mandated lead arrangers & bookrunners, said.
Bank Mandiri (BMRI.JK), Indonesia's largest bank by assets, contributed the biggest portion of that syndicated loan by lending $35 million to Bank Ekspor, according to a statement.
A total of 16 banks participated in that syndicated loan, including Bank of Tokyo-Mitsubishi UFJ, Oversea-Chinese Banking Corporation (OCBC.SI) and Krung Thai Bank KTB.BK.
Bank Ekspor Indonesia to sign $210 mln syndicated loan
SINGAPORE -
Bank Ekspor Indonesia will sign a $210 million syndicated loan on Friday to help refinance the Indonesian lender's loan and support future export financing, Bank Mandiri, one of its mandated lead arrangers & bookrunners, said.
Bank Mandiri (BMRI.JK), Indonesia's largest bank by assets, contributed the biggest portion of that syndicated loan by lending $35 million to Bank Ekspor, according to a statement.
A total of 16 banks participated in that syndicated loan, including Bank of Tokyo-Mitsubishi UFJ, Oversea-Chinese Banking Corporation (OCBC.SI) and Krung Thai Bank KTB.BK.
Bank Ekspor Indonesia will sign a $210 million syndicated loan on Friday to help refinance the Indonesian lender's loan and support future export financing, Bank Mandiri, one of its mandated lead arrangers & bookrunners, said.
Bank Mandiri (BMRI.JK), Indonesia's largest bank by assets, contributed the biggest portion of that syndicated loan by lending $35 million to Bank Ekspor, according to a statement.
A total of 16 banks participated in that syndicated loan, including Bank of Tokyo-Mitsubishi UFJ, Oversea-Chinese Banking Corporation (OCBC.SI) and Krung Thai Bank KTB.BK.
Indonesia's Bank Panin plans 1.5 trln rph bond issue
JAKARTA -
Indonesian lender, PT Bank Panin Tbk (PNBN.JK), plans to raise about 1.5 trillion rupiah ($148 million) from a bond issue in the third quarter, its corporate secretary said on Thursday.
The bank, ranked ninth by assets among Indonesia's lenders and partly owned by Australia and New Zealand Banking Group (ANZ.AX), has appointed Indopremier Securities, Bahana Securities, Danareksa Sekuritas and Evergreen Capital as underwriters.
"We're still monitoring the market, such as demand and interest rates, so we cannot say the exact date yet," Jasman Ginting told Reuters. Shares of Bank Panin closed at 680 rupiah, little changed on the day as the index .JKSE ended up just 0.03 percent. ($1 = 10,140 rupiah)
Indonesian lender, PT Bank Panin Tbk (PNBN.JK), plans to raise about 1.5 trillion rupiah ($148 million) from a bond issue in the third quarter, its corporate secretary said on Thursday.
The bank, ranked ninth by assets among Indonesia's lenders and partly owned by Australia and New Zealand Banking Group (ANZ.AX), has appointed Indopremier Securities, Bahana Securities, Danareksa Sekuritas and Evergreen Capital as underwriters.
"We're still monitoring the market, such as demand and interest rates, so we cannot say the exact date yet," Jasman Ginting told Reuters. Shares of Bank Panin closed at 680 rupiah, little changed on the day as the index .JKSE ended up just 0.03 percent. ($1 = 10,140 rupiah)
Wednesday, July 8, 2009
Indonesia's Money Market Flooded by Foreign Fund
In the second quarter of 2009, foreign fund flow to Bank Indonesia Certificate (SBI) and the state commercial paper (SUN) reached 406.02 million U.S. dollars and 748.33 million dollars respectively, the central Bank Indonesia said.
In the second quarter of 2009, foreign fund flow to Bank Indonesia Certificate (SBI) and the state commercial paper (SUN) reached 406.02 million U.S. dollars and 748.33 million dollars respectively, the central Bank Indonesia said.
According to Tuesday's Investor Indonesia Daily, with those jumps, foreign fund position in SBI and SUN stood at 2.03 billion dollars and 8.50 billion dollars, respectively.
Meanwhile, in capital market, foreign fund recorded net buy of 501.63 million dollars in the second quarter.
The huge amount of the foreign fund flow was able to balance between demand and offer of foreign exchange in the domestic market, said the paper.
In the second quarter of 2009, foreign fund flow stood at 3.18 billion dollars while demand from domestic players was only 1.67 billion dollars.
The percentage of the foreign fund was 37 percent in share portfolios, 20.9 percent in SBI and 18.9 percent in the government bonds.
Kostaman Thayib, the Director of PT Bank Mega Tbk, said that positive economic growth in Indonesia attracted foreign investors for a while, apart of effect of decreasing risk perception.
In the second quarter of 2009, foreign fund flow to Bank Indonesia Certificate (SBI) and the state commercial paper (SUN) reached 406.02 million U.S. dollars and 748.33 million dollars respectively, the central Bank Indonesia said.
According to Tuesday's Investor Indonesia Daily, with those jumps, foreign fund position in SBI and SUN stood at 2.03 billion dollars and 8.50 billion dollars, respectively.
Meanwhile, in capital market, foreign fund recorded net buy of 501.63 million dollars in the second quarter.
The huge amount of the foreign fund flow was able to balance between demand and offer of foreign exchange in the domestic market, said the paper.
In the second quarter of 2009, foreign fund flow stood at 3.18 billion dollars while demand from domestic players was only 1.67 billion dollars.
The percentage of the foreign fund was 37 percent in share portfolios, 20.9 percent in SBI and 18.9 percent in the government bonds.
Kostaman Thayib, the Director of PT Bank Mega Tbk, said that positive economic growth in Indonesia attracted foreign investors for a while, apart of effect of decreasing risk perception.
Thursday, July 2, 2009
BRI Disbursed Rp 20 Trillion to State Companies
JAKARTA- Bank Rakyat Indonesia (BRI) said it disbursed Rp20 trillion out of Rp30 trillion (US$3 billion) in new credits approved by the state lender to other state companies in the first half of this year.
Sofyan Basir the president of the state lender said demand for credits was weak and the bank management is more selective in disbursing new credits.
Sofyan said BRI has pledged new credits to 60 borrowers among state companies this year including those operating in telecommunications, electricity, and cement sectors.
He said all of the credits are syndicated involving mainly other major state banks like Bank Negara Indonesia and Bank Mandiri.
Sofyan Basir the president of the state lender said demand for credits was weak and the bank management is more selective in disbursing new credits.
Sofyan said BRI has pledged new credits to 60 borrowers among state companies this year including those operating in telecommunications, electricity, and cement sectors.
He said all of the credits are syndicated involving mainly other major state banks like Bank Negara Indonesia and Bank Mandiri.
Wednesday, July 1, 2009
Maybank may boost BII asset size
MALAYAN Banking Bhd, Malaysia’s largest bank by assets, said it’s prepared to inject more funds into PT Bank Internasional Indonesia, aiming to double the unit’s asset size within five years.
“If we wish to double or triple the asset size, clearly we need to put in a bit more capital,” said Abdul Wahid Omar, chief executive officer of Maybank, as the Kuala Lumpur-based lender is known.
“We will be looking at doubling within five years.”
Any additional capital for Bank Internasional, which Maybank bought last year, would be financed by Maybank’s internally generated funds, Abdul Wahid said in the interview today.
Maybank spent more than US$2 billion buying bank stakes in Indonesia, Pakistan and Vietnam last year, seeking growth overseas amid increased competition.
Malaysian banks are now offering loans at rates that are “below the economic level,” Abdul Wahid said today. - Bloomberg
“If we wish to double or triple the asset size, clearly we need to put in a bit more capital,” said Abdul Wahid Omar, chief executive officer of Maybank, as the Kuala Lumpur-based lender is known.
“We will be looking at doubling within five years.”
Any additional capital for Bank Internasional, which Maybank bought last year, would be financed by Maybank’s internally generated funds, Abdul Wahid said in the interview today.
Maybank spent more than US$2 billion buying bank stakes in Indonesia, Pakistan and Vietnam last year, seeking growth overseas amid increased competition.
Malaysian banks are now offering loans at rates that are “below the economic level,” Abdul Wahid said today. - Bloomberg
INDONESIA GIVES STATE BANK OF INDIA FOREIGN EXCHANGE STATUS
JAKARTA, Jun 30, 2009 - Bank Indonesia has finally granted the foreign exchange bank license to State Bank of India (SBI) Indonesia to facilitate trade between the two countries.
SBI Indonesia has to wait for two years to secure the license , said Rajive Saran, the president of the Indonesian unit of State Bank of India.
With the license, the bank could take a significant role in facilitating the bilateral trade , which is valued at around US$10 billion a year, Saran said.
Finance director of SBI Indonesia Sathyamurthy said trade between the two countries have grown fast but payment service is not yet efficient and takes a long time by payment agent.
Indonesia has continued to chalk up surplus in trade with India in the past five years.
SBI Indonesia has to wait for two years to secure the license , said Rajive Saran, the president of the Indonesian unit of State Bank of India.
With the license, the bank could take a significant role in facilitating the bilateral trade , which is valued at around US$10 billion a year, Saran said.
Finance director of SBI Indonesia Sathyamurthy said trade between the two countries have grown fast but payment service is not yet efficient and takes a long time by payment agent.
Indonesia has continued to chalk up surplus in trade with India in the past five years.
State Bank of India to Finance Indonesia-India Trade
JAKARTA -- State Bank of India, India's largest lender by assets, will serve as a foreign exchange bank to facilitate trade between India and Indonesia, handling about $350 million initially, an executive at the bank said Tuesday.
Subramanian Sathyamurthy, operations director at local unit PT SBI Indonesia, told Dow Jones Newswires that trade between India and Indonesia last year was worth $10 billion.
Given that SBI handles about 35% of total foreign exchange business in India, its potential market share share of bilateral trade between the South and Southeast Asian nations could eventually be $3.5 billion annually, Mr. Sathyamurthy said.
"Of this $3.5 billion, we aim to garner about 10% initially, which is a decent sum to start with," he said.
Mr. Sathyamurthy said SBI Indonesia previously functioned as a local bank but was given a license this week by Indonesian regulators to operate as a foreign exchange bank. The lender has been seeking such a license for several years.
India is a major importer of Indonesian export goods such as crude palm oil and coal. However, many export transactions are conducted via third parties in Singapore, as there are few local financial houses that specialize in trade and services between the two countries.
Officials at SBI Indonesia, which until last month was named PT Bank IndoMonex, have told local media previously that the bank would be able to offer trade finance and advisory services to Indian companies doing business in Indonesia, as well as remittance services to the Indian expatriate community here, which numbers about 10,000.
SBI owns 76% of SBI Indonesia.
SBI Indonesia has 10 branches in major Indonesian cities, and has said it plans to open more branches in years to come.
Mr. Sathyamurthy declined to comment on a media report Tuesday that said SBI is considering buying another bank in Indonesia, saying he had no knowledge of the matter.
India's The Economic Times reported that SBI is in talks with Indonesia's PT Bank Eksekutif Internasional to acquire a majority stake in it as a strategic investment.
Bank Eksekutif has 13 branches in Indonesia and 491 employees, the report said.
Subramanian Sathyamurthy, operations director at local unit PT SBI Indonesia, told Dow Jones Newswires that trade between India and Indonesia last year was worth $10 billion.
Given that SBI handles about 35% of total foreign exchange business in India, its potential market share share of bilateral trade between the South and Southeast Asian nations could eventually be $3.5 billion annually, Mr. Sathyamurthy said.
"Of this $3.5 billion, we aim to garner about 10% initially, which is a decent sum to start with," he said.
Mr. Sathyamurthy said SBI Indonesia previously functioned as a local bank but was given a license this week by Indonesian regulators to operate as a foreign exchange bank. The lender has been seeking such a license for several years.
India is a major importer of Indonesian export goods such as crude palm oil and coal. However, many export transactions are conducted via third parties in Singapore, as there are few local financial houses that specialize in trade and services between the two countries.
Officials at SBI Indonesia, which until last month was named PT Bank IndoMonex, have told local media previously that the bank would be able to offer trade finance and advisory services to Indian companies doing business in Indonesia, as well as remittance services to the Indian expatriate community here, which numbers about 10,000.
SBI owns 76% of SBI Indonesia.
SBI Indonesia has 10 branches in major Indonesian cities, and has said it plans to open more branches in years to come.
Mr. Sathyamurthy declined to comment on a media report Tuesday that said SBI is considering buying another bank in Indonesia, saying he had no knowledge of the matter.
India's The Economic Times reported that SBI is in talks with Indonesia's PT Bank Eksekutif Internasional to acquire a majority stake in it as a strategic investment.
Bank Eksekutif has 13 branches in Indonesia and 491 employees, the report said.
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