Securities for Stock Loans on the Bursa Efek Indonesia
Indonesia Stock Exchange, Bursa Efek Indonesia (“IDX”) is a stock exchange based in Jakarta, Indonesia. At the end of fiscal year 2012 the ISE had 462 listed companies with a market capitalization in access of $425 billion.
Indonesian economy (GDP) growth rate between 2010 and 2013 was over 6% annually.
The Indonesian administration has made a number of reforms to its financial sector, its tax structure and customs process. Due to its reforms and other proactive measures the administration is anticipated that this growth rate will continue for 2013 and is sustainable for the near future. Indonesian finance and commerce laws are well defined.
Indonesia has a free economy, permitting even non-residents to easily trade stocks. The IDX is a vibrant and transparent market place; this means that non-recourse stock lending is feasible. There are a number of lenders in Indonesia; however, not all lenders are the same. The knowledge, experience and creditability of the lender is of paramount importance.
Squadron and its related entities are quite active in the Asian market place and Indonesia in particular. Even though Indonesia is one of the fastest growing Asian economies, most banks in Jakarta do not offer margin loans for stocks traded on the IDX. This presents a challenge for major shareholders and listed companies who require additional cash for growth, development, expansion, mergers and acquisitions.
Squadron provides shareholders of securities (stocks) which trade on the Bursa Indonesia with several stock loan programs, specifically designed to borrowers in Indonesia who want to borrower against their single stocks or stock portfolio in order to obtain a non-recourse stock loan.
If you own shares that trade on the Bursa Indonesia we can help you borrower against your shares. Borrowers who pledge their stock will continue to receive a credit for dividends and will retain upside potential if the stock position increases in value. Squadron’s stock loans are non-recourse; in the event of a default the stock position is simply surrendered to the lender. The borrower has no further obligations to the repay the loan. There are no negative consequences to the borrower’s credit rating.
Squadron offers long and short term stock loans in Jakarta with competitive interest rates and loan to value ratios of 40% – 75%. Since the loan is based solely on the shares, the Squadron stock loan can be funded very quickly with minimal paperwork. At Squadron we value your privacy. All stock loans and share financing agreements are strictly confidential.
IDX ( Bursa Efek Indonesia) Hours of operation
Morning session (Monday to Thursday): 9:30 to 12:00
Morning session (Friday): 9:30 to 12:30
Afternoon session (Monday to Thursday): 13:30 to 16:00
Afternoon session (Friday): 13:30 to 16:00
Clearing: C-BEST (Central Depository and Book-Entry Settlement System)
Currency: Indonesian Rupiah (IDR)