JAKARTA: PT Adira Dinamika Multi Finance Tbk, a subsidiary of PT Bank Danamon Indonesia Tbk, released medium term notes of IDR400 billion last week for financing in the rest of the year.
The action is a part of its plan to release shelf-registered bonds worth IDR6 trillion in the next two years, according to its statement on newspaper Monday.
The medium term notes consist of two tranches, offering two maturity periods: tranche A with 18-month maturity and tranche B with 24-month maturity, each values IDR200 billion.
The company offers 8.4% coupon a year for tranche A and 8.65% for tranche B.
The company appoints PT NISP Sekuritas as the arranger, and Indonesia Tbk (BNI) as the supervising agency, while PT Kustodian Sentral Efek Indonesia (KSEI) as the paying agent.
Adira Finance also appoints four joint lead underwriters for the bond issuance: PT CIMB Securities Indonesia, PT Indo Premier Securities, PT Mandiri Sekuritas, and PT Standard Chartered Securities Indonesia.
The bond issuance using shelf registration mechanism allows the issuer to get a large amount of fund for maximum two years after the registration.
Financing target
Furthermore, the company expects financing to grow at least 10% next year though it has not decided the exact amount, said Adira Finance Director I Dewa Made Susila.
In the meantime, it expects to disburse IDR30.7 trillion this year, increasing 30% from last year.
Thus, the bond issuance is crucial for Adira Finance, mainly the first stage which amounts IDR2 trillion to meet the financing needs until end of the year. Total bond issue in the shelf registration arrangement is IDR6 trillion for the next two years.
“We are seeking other sources of fund besides banks, as the average loan [the company get from banks] is IDR2.3 trillion to IDR3 trillion,” he explained Monday.
He added that the target might be upsized in line with development in automotive sales.
According to a prospectus published last Monday, the company will release three series of bonds in the first stage: series A with maturity 370 days, series B with maturity 24 months, and series C with maturity 36 months.
Made revealed that the bond coupon rates may be lower that before, as the central bank cuts the benchmark interest rate to 6%.
He said that bond coupon refers to yields of government bonds and corporate bonds.
Adira Finance recorded booking of IDR24.1 trillion through September, increasing 30% from IDR18.6 trillion in the same period last year.
Total booking in October was IDR2.9 trillion. Most financing went to motorcycles (60%-65%), and the rest went to cars. (T04/NOM)
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