Bidders for Lippo "not credible": IBRA
Bidders for Lippo "not credible": IBRA
JAKARTA: The Indonesian Bank Restructuring Agency (IBRA) said it isn't likely to go ahead with its plan to sell a 52 percent stake in PT Bank Lippo as the three consortia bidding for the bank's stake are "not credible," with none of them led by a large commercial bank.
IBRA Chairman Syafruddin Temenggung said late Tuesday that the agency has asked each consortium to include a new large and credible commercial bank to lead the bidding.
Syafruddin said IBRA will give the consortia until Oct. 23 to do so. "Otherwise we won't insist on selling (the stake)," he said. "Each consortium only consists of small banks. We want a credible partner that can develop Bank Lippo."
IBRA had planned to name the winning bidder early next month.
The agency last month received preliminary non-binding bids from three consortia for the Bank Lippo stake.
The first consortium is Eurocapital Asia Ltd., which includes the Philippines' Export and Industry Bank, among others. The second, Summit Investment Ltd., includes Asia Financial Holdings Ltd. and Platinum Investments Holdings Ltd. The third is Swissasia Global, which includes Swissfirst Bank AG and VP Ventures Ltd. -- Dow Jones
;DJ; ANPAf..r.. Indosat-bonds-coupon Indosat sets bond coupons, raises size JP/14/brief
Indosat sets bond coupons, raises size
JAKARTA: PT Indonesian Satellite Corp., or Indosat, has raised the size of its planned bond offering to Rp 2.5 trillion from Rp 1.75 trillion due to good demand, sources said.
Five-year tranche of the issue at 12.5 percent and the coupon for the seven-year tranche at 12.875 percent, the sources told Dow Jones.
Indosat had previously indicated the five-year tranche would carry a coupon of 12.25-12.75 percent and the seven-year tranche 12.50%-13.00 percent.
The bonds will be sold at par.
Indosat decided to increase the size of the bond offering after it received around Rp 3.3 trillion in orders during its recent book building, the sources said.
Local ratings agency Pefindo has assigned an AA+ rating to the paper, reflecting the firm's "strong capacity to meet its long- term financial commitments." -- Dow Jones