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)