JAKARTA, March 12 (Reuters) – Indonesian motorcycle financing firm, PT Federal International Finance (FIF) plans to raise 600 billion rupiah ($50.12 million) from a bond sale in April to use for working capital, the company said on Thursday.
PT Indo Premier Securities, PT Kresna Graha Sekurindo and PT Trimegah Securities have been appointed to underwrite the bonds, which will be offered between March 18-April 3, it said in a prospectus published in Bisnis Indonesia newspaper.
Federal — owned by PT Astra International Tbk (ASII.JK), the country’s largest automotive distributor — said the bonds would be divided into three series with maturities ranging from 370 days to 36 months.
The company, which mainly provides financing for Honda (7267.T), had not yet decided the coupon rate for the bonds.
Indonesia’s benchmark interest rate has fallen to 7.75 percent from 9.25 at the end of last year, which could encourage more consumers to turn to financing companies to pay for new cars and motorcycles.
After breaking sales records last year, Indonesia’s annual domestic vehicle and motorcycle sales dropped in January, by 23.5 percent and 22 percent respectively, as Southeast Asia’s biggest economy slowed.
Federal said its motorcycle financing last year rose about 16.7 percent to 11.9 trillion rupiah. ($1 = 11,970 rupiah)
Sourced via www.reuters.com
