Adira to Sell Rp 2.5t in Bonds in First Half of 2013
Adira Dinamika Multi Finance, Bank Danamon Indonesia’s financial unit, plans to sell Rp 2.5 trillion ($104 million) worth of bonds in the first half of next year in order to expand its business.
Dewa Made Susila, Adira’s chief financial officer, said that the company wanted to strengthen its lending capabilities for consumers seeking to purchase cars and motorbikes.
“We plan to issue Rp 2 trillion in conventional bonds and Rp 500 billion of sukuk [Islamic bonds] in the first half of 2013,” Made said in a text message to the Jakarta Globe on Monday.
He clarified media reports that the company was planning to sell Rp 2 trillion of conventional bonds and Rp 1 trillion worth of sukuk.
Made did not provide further details of the company’s bond-sale plans.
Adira sold Rp 1 trillion in the second half of 2012, after it raised Rp 1.85 trillion selling bonds during the first half of this year. These two sales, combined with its goals for next year, would realize the firm’s plan to issue Rp 6 trillion worth of bonds within two years.
Bank Indonesia has kept its benchmark interest rate at a record low of 5.75 since February, allowing Indonesian companies to use low borrowing costs to tap funds more cheaply.
Bank Pan Indonesia, the country’s seventh-largest lender by assets, plans to sell Rp 4 trillion in bonds later this month to finance further lending activity, according to a brief prospectus published in Bisnis Indonesia last week.
Executives at Astra International, Indonesia’s largest automotive company, voiced optimism that the country would reach the vehicle industry’s car sales target of 1 million next year, which may in turn put Adira in a position to meet its financing target for next year.
Strong demand in Indonesia for cars and motorbikes serves to assist Adira increase its revenue.
Danamon reported a 20 percent increase in net income during the first nine months of this year from the same period last year.
Additionally, Danamon’s net income rose 22 percent, to Rp 2.99 trillion, from January to September of this year.
Shares in Bank Danamon rose 5.6 percent to Rp 5,700 on Monday in Jakarta.