Adira to sell up to Rp1t in bonds

Adira to sell up to Rp1t in bonds

JAKARTA: PT Adira Dinamika Multi Finance, an automotive financing company, plans to sell as much as Rp 1 trillion (US$107.5 million) in bonds next year, corporate secretary Yulianthi Sugiharto said.

The company, which is controlled by PT Bank Danamon, will use the proceeds to increase lending next year to Rp 10 trillion from an estimated Rp 6 trillion in 2004, Sugiharto said late yesterday in Jakarta. "We are planning to boost our financing, including for second-hand cars."

Faster economic growth and record-low interest rates are helping Adira and PT Astra International, the nation's largest auto-distributor, sell more cars in a country of 235 million people. Auto sales locally rose 62 percent in November from a year earlier and most car purchases in Indonesia are funded by loans.

Adira isn't rated by Standard & Poor's or Moody's Investors Service. The bonds will be sold in the second half of 2005, Sugiharto said.-- Bloomberg