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Automotive finance company PT Summit Oto Finance announced on Tuesday that it will offer Rp 600 billion ($64.2 million) of bonds in December.

“The offering is to boost our auto financing next year, and reach our target of Rp 10.4 trillion [of vehicles financed],” said Summit Oto director Edi Suyitno.

It will be the second bond offering this year for the company, a subsidiary of Japanese global conglomerate Sumitomo. In March, it sold Rp 500 billion of bonds.

The offer will be comprised of tranches of one-, two- and three-year bonds. The one-year bonds will offer coupon rates of 9.75 percent to 10.75 percent, the two-year bonds 11 percent to 12 percent, and the three-year bonds 11.25 percent to 12.25 percent.

“We’re confident the market will absorb the bond issue, as investors are seeking shorter-term bonds over the long term, due to sensitivities on market interest rates,” said Agus Wicaksono, director at PT Standard Chartered Securities, one of the issue’s three underwriters.

Summit Oto has financed 69,000 vehicles worth Rp 6.4 trillion this year, short of its goal of 83,000 vehicles worth Rp 7.5 trillion. “Next year, we’re aiming to increase our financing to Rp 10.4 trillion for 106,000 vehicles,” Edi said.

Summit claims to have 7 percent of the automotive finance market and was targeting 8 percent next year.

Henry Pranoto, an analyst at PT Andalan Artha Advisindo Sekuritas, said the company appeared to be targeting the used car market.

“Next year growth should be fine,” Henry said. “Provided no extraordinary events occur, the industry will grow, driven by car sales that are expected to increase between 10 and 30 percent.”

The current lower interest rates should also make cars more affordable, he noted.

Edi said the interest rate for vehicle financing is now down to about 16 percent, from about 19 percent at the start of the year.