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Thursday, December 3, 2009

Oto Multiartha to Issue IDR1.2 Trillion Bond: SMF Extends Bookbuilding Period


as published in Bisnis Indonesia daily newspaper
Thursday, 03/12/2009 00:00 WIB
Oto Multiartha to Issue IDR1.2 Trillion Bond
SMF Extends Bookbuilding Period

JAKARTA: PT Oto Multiartha increases its bond issuance from the previous target of IDR600 billion to IDR1.2 trillion.

"The bond has got effective statement from Bapepam-LK today [yesterday]," said President Director of PT HSBC Securities Indonesia Hari Bartolomeus Mantoro in his text message to Bisnis yesterday.

HSBC Securities and PT Standard Chartered Securities Indonesia are the ones underwriting the bond.

He revealed the bonds would consist of three series. The first bond (one-year tranche A) worth IDR200 billion would give a coupon of 9.8%, the second bond (two-year tranche B) worth IDR500 billion would offer a coupon of 11.25%, while the third bond (three-year tranche C) would worth IDR500 billion.

Director of Oto Multiartha Edi Suyitno recently said the company would play a role in car financing to meet a market share target of 8.2% for new cars.

For next year, he added, the total national car market was projected at 525,000 units, rising from 465,000 units this year.

Until the yearend, the company targets to book IDR400 billion in earnings. Until the third quarter of this year, Oto Multiartha was able to record IDR372.5 billion in earnings. In the meantime, the subsidiary of Sumitomo Corporation, which controls a 83.5% stake, last year was able to post IDR405 billion in earnings, soaring from IDR107 billion in 2007.

Edi added the surging equities also indicated the company' stronger financing performance. The company's equities until July 2009 reached IDR2.09 trillion, rising from IDR1.99 trillion from 2008.

The surging equities, he continued, were attributable to soaring earnings last year as well as to the fact that Sumitono Corporation together with PT Summit Auto Goup injected IDR360 billion in equities last year.

At the moment, he disclosed, the company charged an interest rate of 16-17%, lower than the previous 18%-19%. "The interest rate has been declining in the past two-three months, which also improve credit."

SMF Bond

On the other hand, PT Sarana Multigriya Finansial (SMF), which intends to issue second bond 2009 worth IDR350 billion, extends the bookbuilding period.

"We observe that the bond market is being volatile due to the Dubai World case and the flourishing bond issuance this year," said Corporate Secretary of SMF Eko Ratrianto.

SMF bond will be underwritten by PT Bahana Securities.

The company plans to use 90% of the funds raised from the bond issuance for the refinancing program and the rest for asset-backed securities securitized from BTN housing loans.

During the public expose, President Director of SMF Erica Soeroto told the company planned to lend IDR450 billion next year. "But, we are still waiting for approval from the shareholders."

The company also plans to market asset-backed securities mutual fund next year. (Bisnis/21/mts)

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