IBRA to sell another Rp 8t worth of bank loans
IBRA to sell another Rp 8t worth of bank loans
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
said Wednesday that it would sell around Rp 8 trillion (US$900
million) in restructured loans to local and foreign investors via
a limited auction.
IBRA said in a statement that the loans were owed by 29
individual companies and 20 business groups including the Astra
Group, Mulia Group, Argo Pantes Group and the Bimantara Group.
The agency said that the loans had been restructured and were
generally backed up with various forms of collateral.
It said that the debtors came from various industries
including financial, housing, plantation, manufacturing, textile,
steel, and oil and gas.
The agency said that qualified investor candidates would start
the due diligence process at the end of this month and must
surrender their bid at the latest by the end of next month.
IBRA added that the winning bidders would be announced early
in December.
IBRA has received around Rp 250 trillion or around $31 billion
worth of non-performing loans (NPLs) from the country's troubled
banks.
The agency is mandated to restructure the NPLs before selling
them to investors to raise cash to help finance the state budget
which is heavily burdened by the huge cost of the government bank
restructuring and recapitalization program.
The agency has outsourced the restructuring process of the
smaller NPLs.
IBRA is currently only focussing in the restructuring of
around $26 billion worth of corporate loans owed by around two
thousand debtors. These corporate loans represent around 84
percent of the total IBRA loan portfolio but the number of
corporate debtors only represent 1 percent of the more than 150
thousand debtors.
IBRA has so far managed to restructure around Rp 70 trillion
worth of corporate loans.
The agency has raised around Rp 680 billion in cash from the
recent sale of some corporate loans to Salomon Smith
Barney/Citibank, Hammers and Rui Inc. of Japan, and the local
Bank Central Asia (BCA).
It said that the proceeds represented around 71 percent
recovery rate.
IBRA is targeted to raise Rp 18.9 trillion in cash this year
to help finance the current state budget. So far the agency has
raised around Rp 12 trillion.
The agency has delayed the plans to sell its stakes in the
publicly listed BCA and Bank Niaga into next year in a bid to
obtain a better price. The proceeds from the sale of BCA and Bank
Niaga was supposed to contribute to the Rp 18.9 trillion target.
It is not clear whether the proceeds from the sale of the Rp 8
trillion corporate loans would be contributed to this year's
target or next year's target of Rp 27 trillion.
IBRA is also planning to sell its ownership of various
companies to meet this year's target. (rei)