Indomobil Sets Bond Sale Coupon
Jakarta. Automotive financier Indomobil Finance Indonesia has set the coupon rate for its Rp 500 billion ($38 million) bond sale, which is aimed at supporting the lender’s efforts to attain double-digit loan growth this year.
The sale is the first phase of a greater plan to raise Rp 3 trillion from bonds over the next two years.
Indomobil Finance — a subsidiary of automotive distributor Indomobil Sukses Internasional — will issue one-year notes, three-year bonds and four-year notes in a bonds issuance between April 20 and 21, according to an official statement on Monday.
The one-year notes will be offered at a coupon rate of 9 percent to 9.6 percent, which is approximately 3.05 percent premium compared to government bonds with a similar maturity, according to data from the Indonesia Bond Pricing Agency.
The three-year bonds carry a coupon rate of between 10 percent and 10.6 percent and the four-year bonds will be issued with a coupon rate between 10.15 percent and 10.8 percent. Government bonds with three-year and four-year maturity stood at 6.9641 percent and 7.0904 percent respectively, data from IBPA showed.
Yudistira Slamet, head of fixed-income research at Danareksa Sekuritas, said that financing companies, such as Indomobil Finance, have been racing to attract investors with high premium bonds this year as investors become more selective.
“Investors are more reluctant on multi-finance firms nowadays because they’re getting overweight on them,” Yudistira told the Jakarta Globe on Monday.
The lender has appointed DBS Vickers Securities Indonesia and CIMB Securities Indonesia to manage the sale. Indopremier Securities and Nikko Securities Indonesia are also underwriting the bond sale.
Proceeds from the sale of the bonds, which are set to be listed on the local stock exchange on April 27, will be used entirely as capital for the lender’s financing activities this year.
“Our distribution network is robust. Now, it’s time for us to focus on boosting the company’s effectiveness… There’s still room to increase our market penetration,” Jusak Kertowidjojo, Indomobil Finance president director, said on Monday.
Source: The Jakarta Globe