JAKARTA (TheInsiderStories) – An Indonesian investment and sharia funding provider, PT Wahana Ottomitra Multiartha Tbk (IDX: WOMF) or WOM Finance re-issued 2019 Phase II of WOM Finance III bonds with a principal of Rp1.68 trillion (US$118.31 million) for working capital financing in second quarter of 2019, said an official statement on Monday (05/13).

President Director WOM Finance Djaja Suryanto Sutandar said in a written statement, that the bonds were part of WOM Finance’s III sustainable bonds with a total target fund of Rp5 trillion.

The offering of the bonds, he said, will begin on May 23-24 2019 and will be conducted in three series.

The principal of series-A bonds amounted to Rp931.5 billion with bond interest of 8.50 percent. Series A bonds have a maturity period of 370 calendar days and will mature on June 9, 2020, since payment of interest is on August 29, 2019.

Then, series-B bonds have a principal value of Rp125.5 billion with an interest rate of 9.15 percent. The B series bonds have a term of two years and will mature on May 29, 2021, whose first interest payment will begin on August 29, 2019.

Meanwhile, for series-C bonds the principal value reached Rp618 billion with interest of 9.85 percent. The bonds have a term of three years and will mature on May 29, 2022 with the first interest payment on August 29, 2019.

Previously, the member of Maybank Group issued Phase I of WOM Finance III bonds in 2018 with a principal amount of Rp570 billion.

Sutandar explained, these bonds are guaranteed in full commitment and provide an option for investors (public) to choose the desired series.

This bond issuance is also the company’s option to gain funding because in the first quarter of 2019, the company recorded a negative achievement because it only recorded a net profit of Rp43,434 billion or decreased by Rp11.44 billion or 20.84 percent from the same period the previous year amounting to Rp54.87 billion.

This was due to the company’s operating expenses which increased by Rp24.2 billion or 4.38 percent from Rp552.78 billion in the same period the previous year to Rp577 billion in 1Q 2019.

Meanwhile, the company only earned Rp634.56 billion in revenue, or an increase of, 33 percent, which was Rp8.34 billion from Rp626.21 billion in 1Q 2018 (yoy).

In 2018, the company earned revenues of Rp2.67 trillion, an increase of Rp461.68 billion or 21.43 percent compared to 2017 revenues of Rp2.15 trillion.

In 2018, the company earned a net profit of Rp215.18 billion, or an increase of Rp34.51 billion or 19.11 percent from Rp180.66 billion in 2017.

Written by Daniel Deha, Email: daniel@theinsiderstories.com