Photo by Astra International
JAKARTA (TheInsiderStories) – Indonesian leasing company, PT Federal International Finance (FIF), which is known for its brand name FIFAstra, will enter capital market to issue Rp 2.36 trillion (US$167 million) bond. The bonds will be issued in two series, said the company’ official statement today (02/22).
According to the company, series A offered valued of Rp 990.85 billion. It has 8 percent interest annually with 370 days maturity. Meanwhile, the series B valued of Rp 1.36 billion. The interest rate is a little higher at 8.8 percent annually, due in 3 years.

“It will have bullet payment on the maturity date. While the interest will be paid in every 3 months since recording date. Last interest along with the bond maturity date will be March 22, 2020, for series A and March 12, 2022, for series B,” said the company.

Public offering for the bond will be held on March 4-6. Then it will be followed by allotment date on March 8 and distribution date on March 12. So, the recording date is expected to be on March 13.

Six underwriters PT BCA Sekuritas, PT CGS-CIMB Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM) will cover the bond issuance.

Meanwhile, a state-owned enterprise PT Bank Rakyat Indonesia Tbk (IDX: BBRI) is the trustee for this bond.

The unit of PT Astra Internasional Tbk (IDX: ASII) is also going to use the fresh funding for working capital, especially for financing consumers vehicles credit. Furthermore, FIFAstra focuses on motorcycle financing business too.

Until September 2018, FIF booked of Rp 7.12 trillion revenues, increased by 9.87 percent from the same period last year. Meanwhile, its net profit hiked by 18.62 percent to Rp 1.72 trillion. In that period, Federal International Finance assets was Rp 33.58 trillion, with Rp 27.82 trillion liabilities and Rp 5.75 equity.

Company’ financial ratios are considered healthy. In 2017, the debt to equity ratio was 14.40x, gearing ratio was 4.4x, financing receivables/total assets was 95.2 percent, and the non-performing loan was 0.67 percent.

Written by Staff Editor, Email: theinsiderstories@gmail.com