BBL Dharmala to issue Rp 200 billion bonds
JAKARTA (JP): Multifinance company PT BBL Dharmala Finance has plans to issue a five year bond worth Rp 200 billion (US$83.33 million) in July next year to strengthen its working capital.
The company's president Sim Idrus Munandar said yesterday that about 65 percent of the bonds proceeds would be used to expand the company's leasing, 35 percent for consumer finance and 10 percent for factoring.
"Peregrine Sewu Securities will be the lead underwriter for the bond issuance next year," he said after the company's extraordinary shareholders meeting.
Publicly listed BBL Dharmala Finance deals with leasing, consumer finance and factoring.
Munandar said it would be the company's fourth bond issuance. The first was in 1989 worth Rp 10 billion, the second in 1993 worth Rp 30 billion and the third in 1996 worth Rp 100 billion.
He said the company planned to split its stock by halving the nominal value of its shares from Rp 1,000 to Rp 500 later this year.
"The process is final and we are waiting for the approval now," he said.
Munandar said the split would double the company's shares from 90 million to 180 million shares.
He said the company expected a net profit increase of about 17 percent to Rp 40 billion this year from Rp 34 billion in 1996.
Leasing is expected to contribute about 65 percent to the company's net profit in 1997, consumer finance 25 percent and leasing 10 percent, he said.
Leasing made 75 percent of the company's net profit last year, consumer finance 20 percent and factoring 5 percent.
"Basically we are still focused on leasing, though consumer finance has become a potentially good business now," he said.
To increase the consumer finance sector's contribution to the company's performance, it would finance purchases of two-wheel vehicles and housing this year, he said.
He said housing would be financed through a joint cooperation with a subsidiary of Dharmala's housing brokerage arm PT ERA Indonesia.
"We start financing housing this year," Munandar said. (aly)