CAPITAL MARKET - Bahana Securities Signs for a Business Alliance with Daiwa Securities

PT Bahana Securities, a subsidiary of PT Bahana Pembinaan Usaha Indonesia (Persero) in securities trading and investment banking, had agreed for a business alliance with Daiwa Securities Group Inc, which covers partnership for distribution of research reports, marketing cooperation in merger and acquisition (M&A), and underwriting services. The MoU for this partnership was signed on September 30, 2013 in Tokyo, Japan.

Head of Equities& Research Bahana Securities, Harry Su said, with this partnership, information and research about Indonesian companies will be distributed more widely to global institutional investors, particularly among Daiwa clients that spread across 20 countries. Current researches conducted by Bahana Securities have covered about 85 companies or 75% of the total market capitalization at the Indonesia Stock Exchange, making Bahana a local securities firm with the most market coverage. “This business alliance reflects Daiwa’s optimism for Bahana’s capability and experience in the Indonesian capital market.

Moreover, it represents the constant high confidence and interests of foreign firms in making investments in Indonesia,” he said. According to the MoU, Bahana and Daiwa will cooperate in marketing research on Indonesian companies to global investment institutions as well as providing access to companies in Indonesia. Both parties will also cooperate in the M&A involving Indonesian and Japanese companies.

In addition, the two companies will also work together in the marketing activities for issuance of shares and bonds by Indonesian companies. According to Tetsua Akuzawa, Executive Managing Director, Head of Asia & Oceania, Daiwa Securities Group Inc, Daiwa perceivesIndonesia as having a high and long-term growth potential among ASEAN markets, and is viewed as one of the country that is active for both domestic and foreign direct investments. “As a reputable securities company among investors, Bahana has strong advantage in Indonesian equity research and corporate access services that Daiwa needs,” he said.

Tetsuo continued that through the alliance with Bahana, Daiwa expects to enhance research and corporate access services and to improve product lineups distributing to global investors.The alliance also opens access for Daiwa to Indonesian firms, which is expected to enhance cross border M&A deals between Indonesian and Japanese businesses. Daiwa also expects cooperation with Bahana for the underwriting business, which includes equities and bonds of Indonesian companies.

According to data from the Financial Services Authority, the value of equities and bonds issuance exceeded Rp 97.68 trillion in 2012, while for this year (year to date), equities and bonds issuance has amounted to Rp 77.19 trillion, with Bahana Securities handling total Rp 16.7 trillion issuance as underwriter.