Bank Artha Graha wins IBRA's loan auction
Bank Artha Graha wins IBRA's loan auction
JAKARTA (JP): Bank Artha Graha has won a tender to buy
portfolios of small loans, each loan worth less than Rp 5 billion
(about US$58,225), from the Indonesian Bank Restructuring Agency
(IBRA).
The agency said on Thursday that Bank Artha Graha outbid
several other banks and financial institutions, which took part
in the tender, the second tranche of its loan sales program.
The head of IBRA's Asset Management Credit (AMC) unit Irwan
Siregar said that the credits, which were auctioned, consisted of
mortgage loans and auto loans formerly owned by nationalized,
closed and recapitalized banks.
The loans auctioned in the second tranche were divided into
four lots where the highest bid for lots 1, 2 and 3 were all
submitted by Bank Artha Graha.
Bidding for Lot 4 was canceled because there was only one
bidder.
Lot 1 included mortgage portfolios formerly owned by 17 closed
banks with total outstanding loan principals of Rp 341.8 billion
as of June 30. The highest bid of Rp 188 billion was offered by
Bank Artha, representing a recovery rate of 55 percent.
Lot 2 comprised mortgage portfolios formerly owned by nine
liquidated banks and three recapitalized banks with total
outstanding loan principals of Rp 177.9 billion as of June 30. It
received a high bid of Rp 88.96 billion also from Bank Artha,
reflecting a recovery rate of 50 percent.
Lot 3 contained mortgage portfolios formerly owned by 10 taken
over banks with total outstanding loan principals of Rp 260.75
billion as of June 30. Bank Artha submitted the high bid of Rp
112.12 billion, a recovery rate of 43 percent.
The tender process began on July 11 with the issuance of an
information memorandum. The due diligence data room was available
to registered parties from July 12 to Aug. 22, he said.
Irwan said that eight domestic and two foreign institutions
participated in the due diligence process. They were Bank Artha,
ABN Amro Bank, Bank Internasional Indonesia (BII), Bank Danamon,
Bank Niaga, Bank Mandiri, Bank CIC, Bank BTN, Cargill Investment,
and Lone Star. (10)