Astra Sedaya to issue fixed rate bonds

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)