Five firms interested in PSSI's notes

JAKARTA (JP): Five companies have shown interest in investing their money in the medium term notes issued by the Soccer Association of Indonesia (PSSI) on Thursday, according to PSSI treasurer Irawadi D. Hanafi.

Irawadi refused to name the companies, but indicated that they came from property, agriculture, food manufacturing and shipping enterprises.

"We are expecting to accumulate up to Rp 14 billion from the companies but we still await their confirmation. Just before the issuance and the sale began on Thursday evening, some 15 prospective investors also came to us to seek detailed information about the notes," he said Friday.

All of them are likely to invest in the Serie A notes which are worth between Rp 1 billion (US$105,000) and Rp 10 billion, he said.

PSSI issued notes worth a total of Rp 1.5 trillion for a limited 100 investors as a new fund-raising method. Besides the Serie A, PSSI also offers Serie B notes which have a nominal value of Rp 100 billion.

The two-year notes do not carry interest, but PSSI guarantees that investors will gain non-material benefits.

Proceeds from the notes issued will be invested in bank time deposits and the PSSI will use the interest income to finance the competition and the national team's overseas campaign.

The interest rate used for the investment will be an average of the six-month deposit rate from three banks: Bank Mandiri, state-owned Bank Negara Indonesia and nationalized Bank Central Asia.

Holders of the Serie A notes will not receive any interest but instead they will be permitted to advertise their companies at any soccer events organized by PSSI. Serie B notes holders will get a share of the time deposit interest on their investment.

The funds will only be deposited in state-owned Bank Mandiri, as opposed to the three banks mentioned earlier.

Irawadi said Bank Mandiri President Director E.C.W. Neloe had announced on Thursday that the bank would offer more facilities to lure more investors.

"Holders of the notes will be prioritized if they want to apply for credit at the bank. The notes can also be used as collateral if the holders want to borrow cash from the bank but the amount cannot exceed the nominal value of the notes," he said.

"This way, the investors can still make use of their money although it is kept in a time deposit."

Irawadi also brushed off allegations that PSSI chairman Agum Gumelar had his hand in the notes sale, using his authority as the Minister of Communications.

"We haven't tread on anyone's toes to steal investors. The holders should understand the terms and conditions of the notes before they decide to buy them. This fund-raising program is not fully commercial, as it includes a social objective," he said.

In a related development, PSSI also launched its official website www.sepakbola.tv which will give full coverage of the national league, national team and all daily soccer events in the country.

The website is sponsored by Lippostar.com, a nationwide internet portal launched last October and TWIInteractive, a media and technology division of the IMG marketing and media management group. (ivy)