BBL Dharmala to issue Rp 200 billion bonds

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)