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.
Thursday, July 16, 2009
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.
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