ASF announces bond issue plan

JAKARTA: Automotive financing firm PT Astra Sedaya Finance (ASF) plans to issue bonds worth Rp 600 billion (some US$78 million) in a bid to strengthen its working capital.

ASF president Gunawan Genisuhardja said that the five-series bonds -- carrying maturity profiles from 12 months to 48 months -- would be listed on the Surabaya Stock Exchange (BES) on March 25.

"We have targeted this year to extend Rp 5.8 trillion in credit financing for cars and motorcycles. Of that, we will need Rp 4.5 trillion in funds, which we intend to obtain from bond issue, loans and others," Gunawan said on Wednesday.

Unaudited financial reports said that in 2003, the company extended Rp 5.1 trillion-worth of credit financing facilities.

ASF is the latest in the industry to turn to the bond market to strengthen capital. Earlier, Federal International Finance and Oto Multiartha also submitted plans to BES to issue bonds this year, amounting to Rp 500 billion and Rp 400 billion respectively. -- JP