PT Mandiri Tunas Finance, a subsidiary of state-owned lender, PT Bank Mandiri Tbk (IDX: BMRI), has planned to releases Rupiah bond up to Rp858 billion (US$59.17 million), it said on Friday (08/07) - Photo by OLX

JAKARTA (TheInsiderStories) PT Mandiri Tunas Finance (MTF), a subsidiary of state-owned lender, PT Bank Mandiri Tbk (IDX: BMRI), has planned to releases Rupiah bond up to Rp858 billion (US$59.17 million), the company said on Friday (08/07). All the proceeds will be used for expansion and corporate financing.

The management said, the bonds consist of Series A amounting to Rp472 billion with an interest rate of 8 percent per year and have a three years of tenure. Then, Series B worth of Rp386 billion is offered with an interest rate of 8.60 percent and due in five years.

The effective date its expecting on August 6, the offering period on August 10, the allotment date is August 11, and listing on the Indonesia Stock Exchange is on August 14. Acting as joint lead underwriters is PT Mandiri Sekuritas and received an idAA + rating from PT Pemeringkat Efek Indonesia.

In the midst of pandemic, the financing of MTF fell to Rp8.84 trillion in the first semester of 2020 from same period of last year Rp13.5 trillion. According to the finance director, Armendra, total financing receivables disbursed by the company until June worth of Rp16.22 trillion, down 4.74 percent from June 2019.

While, total revenues during January – June fropped by 10.40 percent to Rp1.47 trillion from Rp1.64 trillion in the previous year. However, in the midst of all this declining, Mandiri Tunas was still able to record an operating profit of Rp371.78 billion.

He said, the ratio of non-performing financing gross maintained at the level of 3.71 percent. As of the end of June 2020, the gearing ratio was 5.34 times, capital ratio of 22.31 percent, ratio of equity to paid-up capital of 977.31 percent, and ratio of financing receivables to total assets of 95.34 percent.

“We are optimistic that in the third quarter the economy  will begin to recover, starting with an increasing trend of new MTF lending between 13 – 25 percent from May to July,” he concluded.

Mandiri Tunas 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 Mandiri Tunas Finance.

US$1: Rp14,500

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