Oto Multiartha bond issuance potentially upsized to IDR1.2 trillion

BI / exchange

23/05/2010

Irvin Avriano A.

Bisnis Indonesia

Oto Multiartha bond issuance potentially upsized to IDR1.2 trillion

JAKARTA: PT Oto Multiartha, automobile financing companies, potentially increasing the amount of bond VII/2010 issuance to IDR1.2 trillion, or as much as 20% above the initial value of the target company IDR1 trillion.

Numbers of market players said the company has set a coupon bonds from the tenor of a year-four years amounted to 7.9% -- 10.65%.

One of bond market participants said the coupon on the securities was set at 7.9% for tranche A which tenured 370 days, tranche B with two years tenure is to 8.7%, and tranche C of 3-year tenure 10.05%. In addition, the coupon for tranche D of the company's bond for the four-year tenure is set at 10.65%.

"The number of issuance is uncertain, but devotees are quite large, so the company is considering to increase the amount of the issuance from the initial target," said another source to Bisnis yesterday.

Coupons were assessed varied compared with the value which offered by issuers to investors in the early period of the bond's offering was for 8.05% -- 10.62% so as not to cause negative or positive sentiment towards the bond issuers.

Oto Multiartha Corporate Secretary Saiful Ichlas when confirmed yesterday said has not been updated about the latest data from the company's bond issuance. Similar thing said by Oto Multiartha Finance Director Edy Suyitno can not be sure the numbers.

"I'll asked the company's treasury immediately."

In the marketing of the bond, the company assisted by PT HSBC Securities Indonesia, PT Standard Chartered Securities Indonesia, and PT DBS Vickers Securities Indonesia as the lead underwriter.

HSBC Securities President Director Bartholomeus Hari Mantoro did not respond to the short message service sent yesterday, as well as the Standard Chartered Securities Director Agus Wicaksono.

The plan the company will use proceeds from the issuance of fixed interest bonds that story is for working capital financing this year's four-wheeled vehicles.

Based on the record of Indonesia Stock Exchange, the company still has a total worth of bonds IDR1.7 trillion, which consists B tranche from V/2007 series and A, B, and C tranches from VI/2009 series.

B tranche of V/2007 series valued IDR500 billion and A tranche of VI/2009 series worth IDR200 billion will mature in June and December.

This year, the company targets add a new vehicle financing contract (booking) worth IDR10.5 trillion, while the target unit financed by the company to reach 110 000 cars.

At the end of last year, the company has 47 marketing network throughout Indonesia. The company also managed to distribute funding worth IDR7.99 trillion, an increase of almost 10% compared with last year.

The company recorded net profit of IDR464 billion last year, an increase of 15% compared with 2008. (10)