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STOCKS NEWS INDONESIA-Bakrie Telecom says to pay debt on time
September 4, 2012 / 8:37 AM / 5 years ago

STOCKS NEWS INDONESIA-Bakrie Telecom says to pay debt on time

Indonesia’s mobile operator Bakrie Telecom, which had paid only a part of about 650 billion rupiah ($68.17 million) due to its bondholders, said it would pay the rest on time on Tuesday.

The company said its planned fund transfer to Indonesian custodian agency KSEI a day before the due date was delayed because of a holiday in New York on Monday.

“From a total of 650 billion rupiah worth of bonds due today, we have paid 250 billion rupiah to KSEI account. The remaining will be paid directly from our creditors’ account to bondholders,” company’s CFO Jastiro Abi said in a statement on Tuesday.

The CDMA operator’s stock and rupiah denominated bond trading was suspended this morning by Indonesian Stock Exchange to avoid market speculation on debt default.

“We regret the speculations made by some parties. That is why we fully agree that suspension of stock trading is necessary to prevent this kind of speculation,” President Anindya Bakrie said in the statement.

Bakrie Telecom stock closed at 137 rupiah on Monday. The broader Jakarta Composite Index was down 0.07 percent at 0245 p.m. (0745 GMT).

0247 (0747 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta)

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14:40 STOCKS NEWS INDONESIA-UBS downgrades Jasa Marga to ‘neutral’

UBS downgraded state-owned infrastructure developer PT Jasa Marga Tbk to ‘neutral’ from ‘buy’, citing project delays and lower valuation.

“We expect completion delays for one of Jasa Marga’s (JSMR) most crucial projects, Jakarta Outer Ring Road 2, with year-to-date land acquisition progress still at 1 percent,” UBS analyst Tim Alamsyah wrote in a note on Tuesday.

“We now think all its current projects (194 km of expansions) will be completed in 2017 compared to our initial estimate of 2016,” Alamsyah said.

The broker also cut Jasa Marga target price to 6,150 rupiah from 6,250 rupiah while lowering its earnings estimates for the company for the years 2012 to 2015 by as much as 10.6 percent to 27 percent.

At 02.07 pm. (0707 GMT) the toll road operator’s shares were at 5,750 rupiah, while the broader index was down 0.18 percent.

0211 (0711 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta)

**************************************************************** 12:49 STOCKS NEWS INDONESIA-Trading in Bakrie Telecom suspended on debt concerns

Indonesian Stock Exchange suspended trading in shares and rupiah denominated bonds of Bakrie Telecom to avoid market speculations as the mobile operator is scheduled to pay its bondholders on Tuesday. “The stock exchange authority is still listing BTEL I-2007 bonds until company is able to fulfil its duty on the bond payment,” the exchange said in a statement on Tuesday. The CDMA operator was due to pay principal and interest worth about 650 billion rupiah ($68.17 million) to its bondholders, while the Indonesian Central Securities Depository (KSEI) had only received 200 billion rupiah. Analysts expect Bakrie Telecom’s financial problems to continue, leaving very little room for raising further debt as its 2015 bond covenant will be breached and therefore its capex guidance will remain modest compared with bigger players. Bakrie Telecom stock closed at 137 rupiah on Monday. The broader Jakarta Composite Index was up 0.08 percent at 1217 p.m. (0517 GMT)

($1 = 9,535 rupiah)

Reporting by Andjarsari Paramaditha

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