Astra Sedaya issues bonds

JAKARTA: PT Astra Sedaya Finance plans to issue Rp 600 billion (US$71 million) in bonds this year to increase funds for auto loans.

Astra Sedaya is a finance company owned by Indonesia's largest automaker, PT Astra International Tbk, and GE Capital.

The bonds will mature in four years with interest payable every three months, the company said on Thursday as reported by Detik.

The company hopes to capitalize on the declining central bank interest rate, which is expected to boost the demand for loans by companies and consumers.

PT HSBC Securities Indonesia and PT Andalan Artha Advisindo will help sell the bonds.

In 2003, Astra Sedaya sold Rp 900 billion worth of bonds. The company is optimistic auto loans will increase this year, according to projected increased vehicle sales.

The Indonesian Automotive Industry Association has predicted sales will reach over 350,000 units in 2004, half of which will be purchased on credit. -- JP