CLSA Bakrie Capital repo

The company is reportedly still has Rp360bn repo outstanding to PNM due in Jan 11. Most of the collaterals are Bumi Resources shares. Originally, the size of this repo to PNM was Rp1.4tr with 59.12m Bumi shares as collaterals at Rp1900/share, paying interest of 13.25-14.25% pa due in Jan 09. However, after refinancing and some payment, it is now only Rp360bn outstanding in Jan 11. Comment: this is unlikely to impose a big pressure onto Bumi's share price even if Bakrie capital fails to repay PNM in Jan 11, as this outstanding share collateral is only roughly 15.2m shares or 0.078% of total outstanding shares of Bumi. But, the big question would be how much more of such repos outstanding in the market? This, unfortunately, is impossible to track, particularly as 19.62% of Bumi's shares are held by locals, who are typically involved in these repos, and up to 607 entities holding the Bumi shares.