JAKARTA (TheInsiderStories) - Leasing company, PT Mandiri Tunas Finance (MTF) offers two series of Rupiah bond with a total values of Rp1.4 trillion (US$96.55 million), the issuer announced on Tuesday (04/27). Series A have a principal amount of Rp915.15 billion with three years of tenure and interest rate 7 percent per annum.
Then, Series B bonds with tenure five years have a principal amount of Rp485.70 billion and coupon rate of 7.65 percent. Based on the announcement on Tuesday (04/27), the unit of PT Bank Mandiri Tbk (IDX: BMRI) set the offering period will take place on May 10, 11 and 17 and listed at the Indonesia Stock Exchange on May 21.
The underwriters for the bond issuance are PT CIMB Niaga Sekuritas and PT Mandiri Sekuritas. The bonds are rated idAA+ with a stable outlook from PT Pemeringkat Efek Indonesia (Pefindo). All proceeds will be used as working capital to finance MTF‘ motorized vehicles.
Previously, finance director of the company, Armendra, said the bond issuance was their strategy to diversify funding in this year. With the issuance of these bonds, the lessor expect their financing grow around 20 percent from last year booked Rp19.7 trillion in 2020. Pefindo estimated that multi-finance companies will issue more bonds in the third quarter of 2021 influenced by relaxation in the automotive sector.
Based on data from the agency, so far the multi-finance industry has issued debt securities with a total value of Rp862.5 billion, which is bonds amounted to Rp732.5 billion and medium term notes worth of Rp130 billion. The analyst, Danan Dito, said the impact of relaxation in the automotive sector provides space for leasing companies to increase financing and provides an increasing trend to issue debt securities.
CEO of Bank Mandiri, Darmawan Junaidi, has said in this year his office will focus to strengthening the subsidiaries performance. He hope the state firm loans could grow up to 6 percent as a group and will remain focused on the wholesale banking and corporate segment until 2024.
This year, Bank Mandiri wants to expand the businesses, especially in digital sector. He quite optimistic that Mandiri Digital are able to meet the various needs of corporate and retail customer. The lender has introduced Livin’ by Mandiri as a refinement of the Mandiri Online apps and is expected to become a super app that utilizes an artificial intelligence approach.
With these development, he targeting, total loans of the bank could grow in the middle single digit range in 2021. Junaidi stated, there are several sectors starting to recover, such as food and beverage, telecommunications, agriculture, and trade. The net interest margin is estimating around 4.6 to 4.8 percent.
Mandiri Tunas Finance focuses on the financing business for new and used four-wheeled vehicles, motorbikes and commercial vehicles. On Feb. 6, 2009, Bank Mandiri officially acquired 51 percent of PT Tunas Financindo Sarana shares from PT Tunas Ridean Tbk (IDX: TURI) and PT Tunas Mobilindo Parama.
Tunas Financindo Sarana was originally founded in 1989 under the name PT Tunas Financindo Corporation, which later in 2000 changed its name to PT Tunas Financindo Sarana. After the acquisition changed to MTF.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com
