Astra Sedaya to issue fixed rate bonds

JAKARTA (JP): Finance company PT Astra Sedaya Finance announced a plan here on Wednesday to issue fixed rate bonds worth Rp 300 billion to strengthen its vehicle financing service.

The company's president Gunawan Geni said the bonds called Astra Sedaya Finance bonds, rated A minus with stable outlook by local rating agency Pefindo, would be offered to the public from March 20 through March 22.

The three-year bonds, which carry a fixed interest rate of 17.675 percent per annum, will be listed on the Surabaya Stock Exchange on April 14.

"All the proceeds of the bond issuance will be used for four- wheel-vehicle financing," he told journalists following the launching of the bonds.

PT Danareksa Sekuritas and PT Citicorp Securities Indonesia will act as the lead underwriter and the senior underwriter, respectively.

Gunawan said the domestic car market was very promising this year on the back of a recovery in several business sectors. He estimated that car sales would double to 180,000 cars from about 90,000 cars in 1999.

Arsianto Poerwanto, managing director of PT Danareksa Sekuritas said he was optimistic that the bonds would receive a positive response from investors given the high rates offered.

Most Indonesian investors still prefer to buy fixed interest rate bonds but they do not have many choices due to a limited supply.

He said that the prospect remained good even though several blue chip companies had already floated similar bonds.

"Other fixed rate corporate bonds have been issued by PT H.M. Sampoerna and PT Astra Agro Lestari," Arsianto said.

H.M. Sampoerna bonds, with nominal value of Rp 1 trillion, have a five year maturity with 17.5 percent coupon rate per annum, while Astra Agro Lestari bonds are worth Rp 500 billion, on five year maturity and on 17.7 percent coupon rate per annum, according to Arsianto.

Astra Sedaya booked a net income of Rp 61.9 billion for the first nine months in 1999, compared to Rp 31.3 billion in the same period the previous year.

Gunawan projected a net income of Rp 68 billion for year 2000 and Rp 114 billion in 2001.

The company extended Rp 231 billion new credits in 1999 and projected to expand to Rp 1.5 trillion this year on the back of the increasing demand in the car market.

Astra Sedaya, with total assets of Rp 526 billion as of Dec. 1999, is 53 percent owned by PT Astra International and 47 percent by GE Capital Corporation. (udi)