Indonesian auto finance, transport firms plan bond issues

JAKARTA - Two Indonesian finance firms and a transport group plan to raise 2.3 trillion rupiah ($202 million) in total from bonds, according to company officials and prospectuses, as domestic interest rates are set to fall further.

Several Indonesian companies have shown an interest in issuing bonds this year to raise funds for working capital and to repay maturing debt. Analysts estimate new corporate bonds could reach a total of around 10-15 trillion rupiah.

Tito Sulistio, chief commissioner at transport firm PT Mitra Rajasa Tbk, said on Tuesday the firm would raise about 750-900 billion rupiah from a bond issue in May.
PT Mandiri Sekuritas, a unit of Bank Mandiri, PT CIMB-GK Securities, a unit of Bank CIMB Niaga and PT DBS Vickers Securities Indonesia, part of DBS Group, have been appointed as underwriters.

Mitra Rajasa is changing its focus from transportation to energy and mining following its acquisition of drilling firm PT Apexindo Pratama Duta Tbk, and of two coal mines in South Sumatra for $40 million. It also plans to change its name to PT Mitra International Resources Tbk.

Two auto finance firms, PT Astra Sedaya Finance and PT Adira Finance Tbk, expect to raise 900 billion rupiah and 500 billion rupiah respectively in the second quarter.
Astra Sedaya, controlled by General Electric Co and Indonesia's largest automotive distributor PT Astra International Tbk, will issue five bond series with maturities ranging from 370 days to 36 months.

The fixed-rate bonds, underwritten by PT Indo Premier Securities, PT Mandiri Sekuritas, PT HSBC Securities Indonesia and PT ING Securities Indonesia, offer rates ranging from 13.50-14.90 percent, the firm said in a prospectus.

Adira Finance, controlled by Indonesia's fifth-largest bank PT Bank Danamon Tbk, plans to sell two-year and three-year bonds with coupons in the range of 12.3-14.5 percent.

PT CIMB-GK Securities Indonesia, PT HSBC Securities Indonesia and PT Indo Premier Securities have been appointed underwriters.

Indonesia's central bank has cut its benchmark interest rate by a total of 175 basis points to 7.75 percent since December and has indicated it could lower the rate further to drive growth. ($1 = 11,375 rupiah). March 24th 2009 By Reuters.