Pegadaian to issue Rp 150b bonds<\/p>\n
JAKARTA (JP): State-run pawnshop operator PT Perum Pegadaian
\nwill issue Rp 150 billion (US$17.6 million) bonds with an eight-
\nyear tenure in mid-July, the company's president Sjamsir Kadir
\nsaid on Tuesday.<\/p>\n
Sjamsir said proceeds from the bond issuance would be used to
\nboost the company's operations in rural areas.<\/p>\n
\"The bonds carry a fixed interest rate of 15.625 percent per
\nannum for the first year, and a floating interest rate
\nthereafter, from the second year through bond maturity,\" Sjamsir
\nsaid.<\/p>\n
The floating rate will be the average of the interest rate on
\nsix-month time deposits of state banks plus a premium of 1.75
\npercent per annum, he added.<\/p>\n
He said the bond offering would be held between July 13 and
\nJuly 17, while the listing on the Surabaya Stock Exchange would
\nbe on August 8.<\/p>\n
Pegadaian has thus far issued a total of Rp 474.6 billion
\nsince 1993.<\/p>\n
He said the company charged its clients a 1.25 percent
\ninterest rate per 15 days, or about 30 percent per annum.<\/p>\n
He attributed the high interest rate charge to the high
\nadministrative cost as the loans extended to clients were a small
\nprincipal amount, but in bulk volume in total.<\/p>\n
The number of Pegadaian's clients stood at 12.7 million
\nindividuals in 1999, compared to 9.6 million the previous year.<\/p>\n
\"To those clients, we channeled cumulative funds of Rp 3.2
\ntrillion in 1999. But this will increase to Rp 3.6 trillion this
\nyear,\" he said.<\/p>\n
Most of the funds channeled were to farmers and traders who
\nneeded cash for their businesses. And the tenure of the funds
\nextended to them are usually short-term, between three months and
\neight months, he said.<\/p>\n
\"Currently, farmers account for 35 percent of our total
\nclients, rural traders 20 percent, fishermen 8 percent, small
\nmanufacturers 6 percent and the remaining percentage is made up
\nof various others,\" he said.<\/p>\n
Pegadaian posted Rp 17.8 billion net profit in the first
\nquarter this year.<\/p>\n
The state-run company booked a net income of Rp 61 billion for
\n1999, compared to Rp 53 billion the previous year.<\/p>\n
Total funds channeled amounted to Rp 3.2 trillion and Rp 3.1
\ntrillion in 1999 and 1998, respectively. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pegadaian-to-issue-rp-150b-bonds-1447893297",
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