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Bond Info Home > INVESTOR RELATION > Bondholders' Services > Bond Info

CORPORATE BOND ISSUANCE

In addition to equities, the Company utilizes a number of other financing instruments available in the market in order to seek different sources of financing and reduce risk there upon. Funds raised from these instruments are used to develop the Company's business and to expand its fleet of vessels. The Company's success in providing added value to shareholders justifies the confidence of management in their issuance of corporate bonds as a source of funds for the development of the Company's fleet.

 

In July 2000, the Company issued the Berlian Laju Tanker Bonds 2000, with five-year maturity period from the date of issuance and had both fixed and floating interest rates, with a total nominal value of Rp 200 billion. The bond was rated id A- (stable outlook) by PT Pemeringkat Efek Indonesia (Pefindo). It consisted of two series, the A series, consisting of bonds with fixed interest rates of 17 per cent per annum; and the B series, consisting of bonds with fixed interest rates of 17 per cent in the first year, and floating interest rates from the second until the fifth year, based on interest rates for six months term deposits with an additional margin of three per cent. The overall bonds were due and paid in full by the Company in 2005.

 

Improvements in the corporate bond market created opportunities for the Company to issue the second Berlian Laju Tanker Bonds in 2003, which also had a five-year maturity period ending on 28 May 2008. The bond was again rated id A- (positive outlook) by PT Pemeringkat Efek Indonesia (Pefindo) and has a total nominal value of Rp 340 billion. It also consisted of two series, the A Series, with a fixed interest rate of 14,75 per cent per year; and the B Series, with a fixed interest rate of 14,75 per cent in the first year, and a floating interest rate from the second until the fifth year, based on the interest rate for three month SBI with an additional margin of 2,5 per cent and with a maximum interest rate of 16,75 per cent. This bond is listed on the Indonesian Stock Exchange with PT Bank Mandiri (Persero) Tbk. as the Trustee.This bond has been fully repaid in 2008.

 

Around the same time, with support from the National Syari'ah Council Majelis Ulama Indonesia, the Company, as participation to develop Syaria'ah Capital Market, issued the Syari'ah Mudarabah Berlian Laju Tanker Bond 2003, which would fall due within five years of issuance, on 28 May 2008. The nominal value of this Syari'ah Bond is Rp 60 billion. At the time of issuance it received a rating of id A-(sy) (positive outlook) from PT. Pemeringkat Efek Indonesia (Pefindo). According to the terms of this bond, the Company is obliged to pay the holder of the bond a sum based on a share of the profits calculated according to an established ratio between the Syari'ah Bond Holder Ratio and revenues. This bond is listed on the Indonesian Stock Exchange with PT Bank Mandiri (Persero) Tbk. as the Trustee. This bond has also been fully paid in 2008.

 

In 2007, convinced with positive development in corporate bonds market, the Company again issued the third Berlian Laju Tanker Bonds in 2007, with another five-year maturity period due on 5 July 2012. At the time of issuance, these bonds were rated id AA- (stable outlook) by PT. Pemeringkat Efek Indonesia (Pefindo) with a total nominal value of Rp 700 billion. These bonds had a fixed interest rate of 10,35% per annum. All of these bonds were sold at their nominal value and were registered on the Indonesian Stock Exchange with PT Bank Mandiri (Persero) Tbk. as the Trustee.

 

At the same time, the Company was again received encouragement from the National Syari'ah Council Majelis Ulama Indonesia and determined to participate in developing the Syari'ah Capital Market through the issuance of Sukuk Ijarah Berlian Laju Tanker Bond 2007, which will fall due within five years of issuance, on 5 July 2012. The nominal value of this Syari'ah Bond is Rp 200 billion. At the time of issuance it received a rating of id AA-(sy) (positive outlook) from PT. Pemeringkat Efek Indonesia (Pefindo). This Syari'ah bond was offered with the provision obliging the Company to pay Rp 20.6 billion per year to the holder of the bond. All of these bonds were sold at

their nominal value and listed on the Indonesian Stock Exchange with PT Bank Mandiri (Persero) Tbk. as the Trustee.

 

On 18 December 2007, complying to the resolution of the General Bond Holders Meeting, holders of the Berlian Laju Tanker III Bond 2007, the Sukuk Ijarah Berlian Laju Tanker III, and the Syari'ah Mudharabah Berlian laju Tanker 2003 approved the replacement of PT Bank Mandiri (Persero) Tbk. with PT Bank Niaga Tbk as Trustee of the bond.

 

On 22 January 2008, following the General Bond Holders Meeting, holders of the Berlian Laju Tanker II Bond 2003 decided to replace PT Bank Mandiri Tbk (Persero) as the Trustee of the bond with PT Bank Niaga Tbk. The decision to nominate a change in the Trustee was intended to avoid conflicts of interest as defined by regulations governing the capital market, with these regulations stating that an appointed the Trustee may not have a credit connection with the issuer.

 

On 16 June 2008, the Company's General Bond Holders Meeting, holders of the 2007 Berlian Laju Tanker III collectively decided to change the Net Debt to Equity Ratio in the Trustee Agreement, so that for the financial statement for the period ending 31 December 2008, the ratio in maximum has changed to 4,5:1 and for the period after 31 December 2008 until the maturity date of the bond, the ratio shall stay at maximum 3,5:1.

 

On 6 July 2008, the Company's General Bond Holders Meeting, holders of the 2007 Sukuk Ijarah Mudharabah Berlian Laju Tanker Bond collectively decided to change the Net Debt to Equity Ratio in the Trustee Agreement, so that for the financial statement for the period ending 31 December 2008, the ratio in maximum has changed to 4.5:1 and for the period after 31 December 2008 until the maturity date of the bond, the ratio shall stay at maximum 3.5:1.

 

In May 2009, following the rapid development of the Company’s business and the need for the Company to expand its fleet, the Company has issued another bonds, Berlian Laju Tanker IV Bonds in 2009 and Sukuk Ijarah Berlian Laju Tanker II 2009 , with a maximum of five-year maturity period due on 28 May 2014. At the time of issuance, these bonds were rated id A- (stable outlook) for both tranches by PT. Pemeringkat Efek Indonesia (Pefindo) with a total nominal value of Rp 400 billion. These bonds had a fixed interest rate ranging from 14.25% to 16.25% per annum depending on the maturity period of the bonds. All of these bonds were sold at their nominal value and were registered on the Indonesian Stock Exchange with PT Bank CIMB Niaga Tbk. as the Trustee.

 

NOTES PAYABLE

 

With increasing trust in the Company by the international investor community demonstrated by positive response of the Company's listing of its shares on the Singapore Exchange (Singapore Stock Exchange Trading Limited), on 4 May 2007, the Company, through its subsidiary BLT Finance B.V., issued Guaranteed Senior Notes with a total value of USD 400 million. These notes payable were offered to the international investor community with interest rates of 7,5 per cent per annum and with a term of seven years, to fall due on 15 May 2014 at a price determined by the nominal value. At the time of issuance, these notes payable received a rating of BB- from Standard and Poor's Rating Group and Fitch Ratings Limited. These notes payable were listed on the Singapore Stock Exchange (SGX-ST) with The HSBC Bank USA, National Association, acting as the Trustee. BLT Finance BV (BLTFBV) retains the option to buy back these notes payable at prices determined by defined conditions and stipulations.

 

On January 2008, Standard & Poor's and Fitch Ratings Ltd rated the notes with idB+(stable outlook) assessment.

 

ISSUANCE OF CONVERTIBLE BONDS

 

After reflecting on the internal and external conditions of the Company, especially with regard to the plan to further develop the fleet of vessels, on 14 December 2005, the Company successfully issued a USD 50 million convertible bond through its wholly-owned subsidiary BLT Finance Corporation. This convertible bond was issued at the nominal cost of 100 per cent, with a fixed interest rate of 1,25 per cent per year. This five-year maturity period Convertible Bond shall have a bond value at the due date amounted to 130,44 per cent.

 

This Convertible Bond can be converted into common shares of the Company, if desired by the holder, at a conversion rate of Rp.1,250. The number of shares to be received at the time of conversion shall be determined by dividing the nominal value of the Convertible Bond to be converted (using a fixed exchange rate of Rp.10.078 per USD), by the conversion rate.

 

The BLT Finance Corporation retains the option to buy back ('Call Option') the Convertible Bond after three years in accordance with predetermined terms and conditions. In addition, the bond holder retains the option to sell ('Put Option') the convertible bond to BLT Finance Corporation two years after the convertible bonds were issued in accordance with predetermined terms and conditions.

 

This Convertible Bonds were fully converted in May 2007. On 17 May 2007, the Company, through its subsidiary BLT Finance B.V., issued another Convertible Bond with a total value of USD 125 million. These bonds were issued with a nominal price of 100 percent, no interest, and 5-year maturity date to be due on 17 May 2012, and offered to the international investor community with bond value of 129.58% from the nominal price at maturity date. At the time of issuance, these bonds received a BB- rating from Standard and Poor's Rating Group and Fitch Ratings Limited. The bonds were listed on the Singapore Stock Exchange (SGX-ST) with The HSBC Bank USA, National Association, acting as the Trustee.

 

If opted by the bond holder, This Convertible Bond can be converted to the Company shares through a Share Buy Back program with an initial conversion rate of SGD 0,4965 per share. The amount of shares to be received by the bond holder at the time of the conversion are to be determined the shares listed at SGX-ST at that time, by dividing the nominal value of the Convertible Bond to be converted (using the fixed exchange rate of SGD 1,5143 per USD 1 or Rp 8.894,- per USD 1) by the conversion rate.

 

After two years after the issuance, the BLT Finance Corporation retains the option to buy back ('Call Option') the overall Convertible Bond based on predetermined terms and conditions. In addition, after 3 years of the issuance date, the bond holder also retains the option to sell ('Put Option') the convertible bond to BLT Finance Corporation based on predetermined terms and conditions.

 

 

(c) 2007 PT Berlian Laju Tanker Tbk. All Rights Reserved.