The Jakarta Post, Jakarta
Publicly listed PT Wahana Ottomitra Multiartha Tbk (WOM) secured a Rp 186 billion (US$20 million) loan Thursday from the World Bank affiliate for the private sector, International Finance Corporation (IFC), to expand the company's consumer financing of motorcycle purchases.
WOM President Director Benny Wenas and IFC Country Manager for Indonesia German Vegarra signed the loan agreement in Jakarta on Thursday.
""This is the first loan we have obtained from an international financial institution and we plan to use it to help our customers from the middle to low income group to purchase motorcycles to support their businesses,"" Benny said.
The loan, which will mature in five years, carries an interest rate of between 14 and 15 percent annually, including the swap rate to protect the loan from exchange rate fluctuation.
The IFC loan will help the company cover Rp 4 trillion in funds needed to meet its target of financing 400,000 motorcycles this year, said Benny.
At present, he said, the company had already secured a total of about Rp 2 trillion, Rp 825 billion of which came from bond issuance and the remaining from banks and the IFC loan.
""We're expecting to get other loans from a Singaporean and Middle-Eastern banks this year to cover the remaining funds needed,"" he said, refusing to name the banks.
Meanwhile, Vegarra said that the loan agreement reflected IFC's strong commitment to support the development of small and medium enterprises (SMEs) in Indonesia.
The IFC has given $1 billion in loans to Indonesian companies in the past five years, he said.
""IFC provided total loans of $260 million to Indonesian companies during its latest fiscal year which started in July last year and ended in June this year. We plan to lend $350 to $400 million more for this fiscal year,"" said Vegarra. About 60 percent of the total amount was given to SMEs, he said.
WOM, through its 92 branch offices across the country, spent Rp 3.64 trillion to finance the purchase of 362,758 motorcycles last year.
The publicly listed WOM is 15.01 percent owned by IFC, 46.99 percent by Bank Internasional Indonesia and 5 percent by DBS Nominees Pte. Ltd, while founders and the investing public hold 23 percent and 10 percent, respectively.(07)
