JAKARTA: PT Surya Artha Nusantara Finance, a member of Astra Financial Services, will issue bonds worth up to IDR1.2 trillion late this year for the 2012 business expansion.
The bond proceeds will be for heavy equipment financing as much as IDR5.5 trillion next year. The bond issue is being processed by the regulator, Bapepam-LK.
Such target disbursement increases 25% from the expected amount of this year at IDR4.4 trillion. To reach the target, Surya Artha Nusantara Finance (SAN Finance) needs up to IDR5.8 trillion, said Director Andrijanto.
“We will use bond as source of fund. We also plan to issue medium term notes in the second half of 2012,” he told Bisnis over the weekend.
SAN Finance has appointed three underwriters for the bond issue, namely PT NISP Sekuritas, PT HSBC Securities Indonesia, and PT Standard Chartered Securities Indonesia.
It plans to issue bonds in three series, based on maturity and coupon. The one-year bond offers coupon 7%-8%, the two-year one offers coupon 8%-9%, and the three-year bond offers 9%-9.5%.
The company expects to disburse 75% of its fund to finance the customers of heavy equipment, which is distributed by PT United Tractors Tbk. The rest 25% will be used to support operational equipment financing such as heavy trucks.
Earlier this year, SAN Finance released its first bond worth IDR600 billion with maturity ranging from 1 year to 3 years. It covered 30% of the needed fund.
The company expects to get 70% of other fund from bank loans. Around 40% of the needed loan will be from local bank, and the rest 30% from foreign banks.
Andrijanto added that SAN Finance would get a syndicated loan from foreign banks (offshore), including Mizuho Bank Ltd that provides US$60 million. The loan facility will be disbursed at end of the month. (t04/ags)