S

tate investment company PT Danareksa expects to raise up to Rp 1 trillion (US$103.7 million) from two phases of bond sales in 2013 to strengthen the company’s capital structure.

In the first phase, Danareksa intends to issue two series of bonds, A and B, with maturities of three and five years, respectively. The company expects to generate about Rp 500 billion from the bonds, which have obtained an A rating from local rating agency PT Pemeringkat Efek Indonesia (Pefindo).

The A series bonds will offer a coupon rate of between 7.25 percent and 8.25 percent per annum, while those in the B series will offer a rate of 7.875 percent to 8.875 percent a year. Coupon payments will be made every three months.

The first bond offering period will take place from Jan. 2 to 4. Danareksa is scheduled to list the bonds on the Indonesia Stock Exchange (IDX) on Jan. 10 and has appointed its subsidiary, PT Danareksa Sekuritas, as underwriter for the sales.

The company will use all the funds raised from the first bond issuance to replace its internal funds used to pay off bonds issued in 2007 that matured last September. The company did not issue the debt papers immediately because it did not need a long-term financing source, according to Danareksa president director Edgar Ekaputra.

“At the moment, we have more than Rp 2 trillion ready for short-term financing. However, because we also run a security business through Danareksa Sekuritas, we will need a long-term financing source next year should anything happen to the shares or the bonds of the companies we represent,” he said in Jakarta on Thursday.

As underwriter, Danareksa Sekuritas would be obliged to buy shares or bonds not absorbed by investors as expected, Edgar added.

Last year, Danareksa Sekuritas along with PT Mandiri Sekuritas and PT Bahana Securities spent Rp 1.41 trillion on purchasing PT Garuda Indonesia’s unsold shares during the latter’s initial public offering (IPO) in February.

Only 53 percent of the shares offered were absorbed by investors due to what many considered was an expensive selling price of Rp 750 per share.

In April 2011, the three companies resold the shares for Rp 620 apiece to airline firm PT Trans Airways, which is owned by businessman Chairul Tanjung.

Danareksa also plans to hold a second bond issuance next year, although as yet there is no specific time schedule. It hopes to gain the remaining Rp 500 billion for long-term financing.

The company anticipated a higher number of retail investors in 2013 compared to previous years, according to Edgar.

“About 10 years ago, corporate investors dominated the bond market owning 80 percent, followed
by retail investors with 20 percent. Now, they are more on a par,” he added.