WOM Finance prepares IDR500 billion bonds

Monday, 22/03/2010 00:00 WIB

WOM Finance prepares IDR500 billion bonds

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: PT Wahana Ottomitra Multiartha Tbk (WOM Finance) studies the bond issuance worth IDR500 billion at maximum while waiting for the shareholders approval.

President Director of WOM Finance Suwandi Wiratno said the company plans to seek shareholders approval in the extraordinary general meeting of shareholders (EGMS).

The meeting will be done at the same time with the annual general meeting of shareholders (AGMS) on April 22.

"It is not urgent but we should make it together with AGMS so that when we need to issue bonds this year we don't need to seek approval again and EGMS," he said last week.

Now the company has not invited or selected underwriters for bond issuance. The company has not ensured the bond issuance timing as it is just early scheme.

Suwandi said the bond market now is quite good following the similar investment instrument issuance by some financing companies early this year as one of the alternative funding resources.

The company is likely to call off the sharia bond issuance in Dubai worth US$80 million noting that almost all funding need has been covered. The issuance scheme at one of the Arabian Emirate Union countries since 2007.

Despite the corporate scheme to issue bonds, the funding need for motorcycle credit financing has been covered by the backup given by the holding compnay.

PT Bank Internasional Indonesia Tbk (BII) as the holding firm has agreed to cover 85-90 percent of WOM finance needs.

He also said the company plans to change the commissioners in the EGMS here.

One of the commissioners plans to resign and will be substituted. "But I cannot name the substitute depending on the GMS."

The total ne booking this year stands at 550,000-650,000 units of motorcycles or worth IDR6.5 trillion.

Last year the company failed to get the targeted booking of 400,000 units or IDR4.5 trillion due to the global crisis impact.

At the same GMS, the company plans to address accountability report of finance performance and finance statement last year with the recorded proceeds of IDR1.35 trillion or declined 7.31 percent from IDR1.46 trillion in 2008.

Despite the slashing revenue, the net profit rose 192.94 percent as from DIR20.71 billion in 2008 into IDR60.67 billion. (Bisnis/iaa/mts)