IBRA plans to issue asset-backed bonds
IBRA plans to issue asset-backed bonds
SEOUL (Dow Jones): The Indonesian Bank Restructuring Agency is
preparing to issue its first asset-backed securities in the first
quarter of next year, Amir Sambodo, advisor to IBRA's chairman,
said on Thursday.
While the details of the issue still have to be finalized,
Sambodo noted that IBRA has a total of US$1.5 billion worth of
assets to securitize, both in Indonesian rupiah and foreign
currencies.
The first issue will most likely be launched on the domestic
market, he said, because Indonesia's low sovereign credit rating
makes it difficult to tap the international market.
IBRA's upcoming issue will be a Collateralized Debt Obligation
because an 'ABS' could be confused with IBRA's petrochemical
interests, which are known as ABS, Sambodo said.
In his presentation to delegates at a forum organized by the
Korean Asset Management Corporation, Sambodo said IBRA has
already spent $15 billion to merge 10 banks and recapitalize 10
other banks, as well as $630 million to recapitalize Bank Bali.
In terms of asset management credit, IBRA has resolved 72
percent of non-performing assets, worth $7.3 billion, for the top
21 debtors.
IBRA, he said, has sold $248 million worth of mortgage and
corporate loans, collected $1.6 billion in cash from financial
assets, auctioned $120 million worth of non-financial assets and
outsourced $1.5 billion of commercial loans.
IBRA's financial asset portfolio is currently worth $31
billion and includes the assets of over 150,000 debtors.
He also said IBRA expects to complete the auction of $410
million worth of loans in coming weeks.
In 2001, IBRA's greatest priority will be to dispose of equity
derived from credit restructuring, Sambodo said. The agency will
also continue its corporate credit restructuring and loan sales
as well as auctioning non-financial assets.
"Indonesia is in a critical phase of economic restructuring
and political democratization," changes Sambodo said he is
confident it will go through.