IBRA plans to issue asset-backed bonds<\/p>\n
SEOUL (Dow Jones): The Indonesian Bank Restructuring Agency is
\npreparing to issue its first asset-backed securities in the first
\nquarter of next year, Amir Sambodo, advisor to IBRA's chairman,
\nsaid on Thursday.<\/p>\n
While the details of the issue still have to be finalized,
\nSambodo noted that IBRA has a total of US$1.5 billion worth of
\nassets to securitize, both in Indonesian rupiah and foreign
\ncurrencies.<\/p>\n
The first issue will most likely be launched on the domestic
\nmarket, he said, because Indonesia's low sovereign credit rating
\nmakes it difficult to tap the international market.<\/p>\n
IBRA's upcoming issue will be a Collateralized Debt Obligation
\nbecause an 'ABS' could be confused with IBRA's petrochemical
\ninterests, which are known as ABS, Sambodo said.<\/p>\n
In his presentation to delegates at a forum organized by the
\nKorean Asset Management Corporation, Sambodo said IBRA has
\nalready spent $15 billion to merge 10 banks and recapitalize 10
\nother banks, as well as $630 million to recapitalize Bank Bali.<\/p>\n
In terms of asset management credit, IBRA has resolved 72
\npercent of non-performing assets, worth $7.3 billion, for the top
\n21 debtors.<\/p>\n
IBRA, he said, has sold $248 million worth of mortgage and
\ncorporate loans, collected $1.6 billion in cash from financial
\nassets, auctioned $120 million worth of non-financial assets and
\noutsourced $1.5 billion of commercial loans.<\/p>\n
IBRA's financial asset portfolio is currently worth $31
\nbillion and includes the assets of over 150,000 debtors.<\/p>\n
He also said IBRA expects to complete the auction of $410
\nmillion worth of loans in coming weeks.<\/p>\n
In 2001, IBRA's greatest priority will be to dispose of equity
\nderived from credit restructuring, Sambodo said. The agency will
\nalso continue its corporate credit restructuring and loan sales
\nas well as auctioning non-financial assets.<\/p>\n
\"Indonesia is in a critical phase of economic restructuring
\nand political democratization,\" changes Sambodo said he is
\nconfident it will go through.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-plans-to-issue-asset-backed-bonds-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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