Astra unit sets coupons for bonds

Astra unit sets coupons for bonds

JAKARTA: A unit of PT Astra International, Indonesia's biggest auto distributor, plans to sell Rp 1 trillion (US$110.1 million) of bonds in five parts with coupons ranging from 7.875 percent to 11 percent.

Jakarta-based PT Federal International Finance will sell notes with maturities from 366 days to three years, said company President Ida Lunardi in a presentation to investors and analysts on Tuesday.

The money will be used to make loans to buyers of motorcycles assembled by Astra.

The lowest interest rates in six years have spurred consumer spending, helping Astra, PT Indomobil Sukses Internasional and other dealers sell more cars and motorcycles. -- Bloomberg