Indonesia Digest: CMNP eyes asset securitisation; Local banks announce rights issue

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Toll road operator Citra Marga Nusaphala Persada is planning to raise funds through asset securitization, while three small banks are seeking to raise additional capital through a rights issue.

Toll road operator CMNP eyes asset securitization

Toll road operator Citra Marga Nusaphala Persada (CMNP) says it plans to raise funds from asset-backed securities in the first quarter of this year to fund its toll road construction projects until 2019.

According to a report by indopermier.com, the asset to be transformed into securities is the Wiyoto Wiyono toll road in Jakarta, which stretches 32.96 kilometres long. The planned asset securitization process has reached the rating and pricing stage.

According to CMNP executive director Shadik Wahono, the company’s decision to turn to asset-backed securities to raise funds was inspired by the success of fellow road operator Jasa Marga in issuing asset-backed securities under collective investment contracts (KIK-EBA) last year. The state-owned company had its Jakarta-Bogor-Ciawi toll road as its underlying asset and managed to raise up to Rp 2 trillion ($150 million).

Shadik said he believed his company’s securities would be priced higher than that of its competitor. “We are extremely confident that the pricing will be better than that of Jasa Marga, because our product is an inner-city toll road,” he said.

The company expects the rating and pricing to be finalised by the end of February so that the securitization of its asset can be realized in the first quarter of the year.

Three banks to raise funds via rights issue

Three local banks have announced plans to raise capital via a rights issue this year, according to a report by Kontan.

The three banks are Bank Kesejahteraan Ekonomi (Bank BKE), Bank MNC Internasional and Bank Harda, are all currently categorized as small to medium size banks (technically classed as BUKU I and BUKU II banks) based on core capital.

Bank MNC International, the biggest of the three, says it plans to issue rights worth Rp 400 billion ($30 million), which will be used as additional capital and also to strengthen the company’s performance.

The lender, whose core capital currently stands at Rp 1.4 trillion, has expressed its desire to upgrade itself to the higher category of BUKU III, which requires a core capital of over Rp 5 trillion. The bank has outlined rights issuance as one of its annual strategies to reach the required amount of core capital.

Similarly, Bank BKE says it is expecting to raise Rp 200-300 billion from the issuance of rights, which is set to take place in April, while Bank Harda says it will issue its rights in March and will be looking to raise around Rp 100 billion.

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.