Adira Finance Gets US$300M Syndicated-loan

Moody's Assigns First-Time Baa2 to Indonesian Adira
Indonesian Adira Dinamika Multi Finace Tbk.

JAKARTA (TheInsiderStories)—Indonesia’s multi-finance company PT Adira Dinamika Multi Finance Tbk (IDX: ADMF) get a syndicated loan of US$300 million to boost its financial performance.

Adira Finance President Director Hafid Hadeli said in a press releaseblast week that the syndicated loan has a 3-year tenor with a competitive interest. The company is assisted by ANZ Bank Ltd, The Bank of Tokyo-Mitsubishi UFJ Ltd, BNP Paribas, Citigroup Global Markets Asia Ltd, and DBS Bank Ltd as lead arrangers and bookrunners.

Hadeli said the investor’s confidence in Adira Finance remains strong as indicated by the issuance of the syndicated loans that are oversubscribed about 2.6 times.

Adira Finance started to diversify its funding source on foreign syndicated loans since 2013 as an alternative to boost its financial performance. The foreign loan share in the company contributed to around 16 per cent at the end of the first quarter of 2018.

This year, the company targets financing to grow by 5 per cent to 10 per cent or reach about Rp34 trillion to Rp36 trillion.

Adira Finance booked Rp443 billion in net income in the first quarter of 2018, a 35.2 per cent rise from Rp328 billion. The rise in net profit is driven by financing growth and decreased funding costs due to the lower interest rate.

The company recorded 13.3 per cent in growth revenue to Rp2.4 trillion in the first quarter of 2018, while total expenses rose 9.8 per cent compared to the same period last year of Rp1.8 trillion.

The financing disbursement reached Rp8.7 trillion in the first quarter of 2018, a 19.5 per cent rise compared to the same period last year.

Last year, Adira Finance booked Rp1.4 trillion in net income, up 39 per cent from Rp1 trillion in 2016. The company recorded only a 2 per cent increase in the financing growth to Rp45.2 per cent last year due to sluggish motorcycle and car sales.

According to the Indonesian Motorcycle Industry Association data, the motorcycle sales in 2017 reached only 5.886 million units, down 0.7 per cent from 5.931 million units in 2017. In addition, the car sales grew only 1.6 per cent in 2017 to 1.079 million units from 1.06 million units in 2016.