Primaswadana Finance gets Rp 60b loan

Primaswadana Finance gets Rp 60b loan

JAKARTA (JP): Finance company PT Primaswadana Perkasa Finance,
a PSP Group subsidiary, secured a Rp 60 billion (US$24.76
million) syndicated loan yesterday.

Primaswadana's president, Robert Sutanto, said his company
would use the loan to supply motor vehicle credit, especially at
its branches outside Java which make up 70 percent of the
company's lending.

"We are confident of the growing market outside Java," he
said.

The three-year loan carries an annual interest rate 3 percent
above the Jakarta Inter Bank Offered Rate.

The loan was arranged by Bank Rajawali, which also provided Rp
27.5 billion of the loan.

The syndicate includes eight local private banks. They are
Panin Bank, IFI Bank, Bank Bukopin, Bank Bumiputra, Bank Central
Dagang, Bank Rama, Bank Dewa Rutji, and Unibank.

Panin Bank and IFI Bank provided Rp 10 billion each, Bank
Bukopin and Bank Bumiputra Rp 5 billion each, and Bank Central
Dagang Rp 2.5 billion.

Bank Utama was supposed to be in the syndicate but withdrew at
the last minute.

Robert refused to say why but said Bank Utama was on the
tender panel but never committed to staying in the syndicate.

Primaswadana is one of the leaders in motorcycle and car
financing and lent Rp 140 billion last year, he said.

Consumer credit for cars and motorcycles made up most of last
year's credit, and would increase to between 80 and 90 percent of
the company's total lending this year, Robert said.

The company expects credit to rise to at least Rp 700 billion
and possibly up to Rp 1 trillion this year. This comes after the
opening of 25 new branches in Jakarta and in Sumatra, Kalimantan
and Sulawesi last June.

"Before last June, we only had three branches in the greater
Jakarta area, now we have 28 branches in small places all over
the country, where credit for cars and motorcycles is needed for
personal and business purposes," Robert said.

He predicted the extra branches outside Java, would lift its
profits to between Rp 20 billion and Rp 25 billion this year from
about Rp 11 billion last year.

The company plans to increase its branches to 50 this year, he
said. (02)