JAKARTA (TheInsiderStories) – Unit of PT Astra International Tbk (IDX: ASII) in the financial service, PT Toyota Astra Financial Services (TAFS) offered Rupiah bond as much as Rp745.05 billion (US$49.67 million) in this month. Based on disclosure information on Tuesday (05/12), the company will issue these bonds in two series.
In details, Series A have a principal value of Rp 206 billion will mature on May 29, 2021 or in 370 days with fixed interest rate of 7.10 percent. Then, Series B have worth of Rp 539.05 billion. The three-year tenor bonds offer a fixed interest rate of 8.25 percent per annum.
TAFS will start the offering period starting today until May 14, allotment date on May 15, and will be listed on the Indonesia Stock Exchange on May 20. Joint lead underwriters for the bond issuance are PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM).
The company said the proceeds will use to support the leasing program. This year, the company targeting to lend Rp11 trillion, up 20 percent compared to 2019.
In an official statement released on April 27, Prijono Sugiarto, president director of Astra reported, financial service companies under Astra Group contributed Rp1.42 trillion to the company’ profit worth of Rp4.81 trillion n the first quarter (1Q) of 2020, or almost flat compared to same period in 2019.
He adds, total financing of the consumer financing business increased by 14 percent to Rp23.6 trillion and net profit contribution from the finance company, which focuses on car financing increased 11 percent to Rp377 billion. While, the net profit contribution of the Astra Group finance company on motorcycle financing, PT Federal International Finance, rose 11 percent to Rp673 billion, both of which reflect the financing portfolio increased.
Then, PT Bank Permata Tbk (IDX: BNLI), a local lender which is 44.6 percent owned by the company, net profit decreased by 51 percent to Rp185 billion, primarily due to increased provision fees. While, the insurance unit, PT Asuransi Astra Buana’ (Astra Insurance) net profit also dropped 2 percent to Rp263 billion, primarily caused by a decrease in underwriting income.
In the same quarter, life insurance firm, PT Astra Aviva Life (Astra Life) added more than 460,000 customers new individual life insurance and 49,100 new customer insurance programs welfare of company employees.
Sugiharto claimed, although the performance of the Astra Group‘ automotive and financial services business is solid, overall performance of the Group decreased in the first quarter of this year, mainly due to falling coal prices and weakening consumer confidence. In addition, due to the impact of the COVID-19 pandemic has gained weight and restrictions have been implemented for tackling the pandemic, the conditions faced are increasingly difficult and disturbing Astra Group’ performance in April to date.
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