ASF to issue Rp 1t in bonds<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Financing company PT Astra Sedaya Finance (ASF) plans to issue
\na Rp 1 trillion (US$107.18 million) worth of bonds in October to
\nhelp increase automobile sales.<\/p>\n
The company, which is the financing unit of the country's
\nlargest automotive producer PT Astra Internasional, plans to use
\nthe proceeds from the bonds issuance to provide more loans for
\nconsumers wishing to buy cars and motorcycles.<\/p>\n
ASF president director Gunawan Geniusahardja told reporters on
\nFriday that his company expected higher amount of loans, reaching
\nup to Rp 7 trillion by the end of the year.<\/p>\n
The loans, said Gunawan, would also be financed by internal
\nfunds and bank borrowing.<\/p>\n
The new bonds will have a variety of tenures, ranging from one
\nyear to four years. The company has appointed Andalan Artha
\nAdvisindo Securities and PT Trimegah Securities as the
\nunderwriters.<\/p>\n
The planned sale, which will be registered at the Surabaya
\nStock Exchange, is the second for ASF in recent years after the
\nprevious sale of Rp 500 billion in bonds.<\/p>\n
Automotive sales have been escalating this year, spurred on by
\nthe availability of low-interest loans. Car sales for 2004 are
\nexpected to reach a record high of more than 420,000 units, while
\nthe figure is expected to be 3.6 million for motorcycles.<\/p>\n
Encouraged by the strong demand, the financial arms of
\nautomotive companies are aggressively looking for more funds, so
\nthey can lend more.<\/p>\n
On Monday, financing company PT Indomobil Finance Indonesia
\nannounced its plan to issue Rp 300 billion worth of bonds in
\nOctober, which will be followed with another bond issuance of Rp
\n750 billion. The firm revised upward its target of financing for
\n2004 by 100 percent from last year to Rp 1.4 trillion.<\/p>\n
Another financial arm of Astra, Federal International Finance
\n(FIF), announced last month its plan to issue Rp 500 billion
\nbonds.<\/p>\n
Despite the various bond offers, Gunawan is confident that the
\nmarket would welcome ASF's planned bonds.<\/p>\n
\"I'm optimistic that our bonds will be welcomed because we
\ntarget a different market segment. The FIF, for example, focuses
\non Honda motorcycle buyers, while we eye the market outside of
\nHonda,\" said Gunawan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asf-to-issue-rp-1t-in-bonds-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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