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ajor automotive financing firm PT Astra Sedaya Finance (ASF), part of diversified conglomerate PT Astra International, plans to sell debt papers totaling Rp 1.95 trillion (US$172.37 million) as part of its 2014 financing expansion.

ASF said in an announcement published on Wednesday that it would issue three series of debt papers: A, B and C.

It hoped to generate Rp 1.13 trillion from the A series, which will mature after 370 days and offer 9.6 percent coupons.

The B series '€” with a maturity period of 36 months and 10.5 percent coupons '€” is expected to generate Rp 740 billion, while the C series, which will come due in 48 months and offer 10.6 percent coupons, is estimated to raise Rp 75 billion.

PT Fitch Ratings Indonesia gave a AAA rating to all three bonds.

ASF will offer the debt papers from March 28 to April 1 and they will be listed on the Indonesia Stock Exchange (IDX) on April 7.

ASF, a provider of automotive financing, has appointed PT BCA Sekuritas, PT CIMB Securities Indonesia, PT DBS Vickers Securities Indonesia, PT Indo Premier Securities and PT Standard Chartered Securities Indonesia as the underwriters for the bond issuance.

Proceeds from the debt-paper sale would go toward financing ASF'€™s business this year, the company said in the announcement.

ASF corporate secretary Welfizon Yuza said that Astra Sedaya was eying Rp 24.2 trillion in new financing in 2014, the same level it booked last year.

'€œThis year, besides higher interest rates, liquidity in the market is also limited,'€ he said.

'€œSo, we have decided to focus on maintaining the booking quality rather than the booking quantity or volume. Our target is the same as last year'€™s achievement,'€ he added.

As of now, more than 60 percent of ASF'€™s financing portfolio is used to finance purchases of Astra-made vehicles, including Toyota, Daihatsu and Isuzu.

Welfizon said that aside from the bond issuance, the company would also source financing funds from bank loans, both domestic and foreign.

He acknowledged that PermataBank'€™s planned equity participation in the financing company would also enable it to obtain a competitive source of funding source.

Permata is also part of Astra, as the latter holds a 44.6 percent stake in the publicly listed lender.

As previously reported, Permata is looking to obtain a 25 percent share in ASF for Rp 2.04 trillion.

After the share purchase, Astra'€™s stake in ASF will be reduced to 75 percent.

'€œPermata'€™s equity participation in ASF will strengthen ASF'€™s position in obtaining a competitive funding source in the form of joint financing,'€ Welfizon said.

Meanwhile, ASF'€™s latest financial report shows that it had Rp 31 trillion in total assets as of December 2013.

Its liabilities amounted to Rp 26.5 trillion and its equities reached Rp 4.5 trillion.

Last year, it saw its revenues climb 17.1 percent to Rp 4.39 trillion.

The revenue from consumer financing remained the largest contributor to the overall figure, accounting for almost 80 percent, as it assisted in the purchase of 176,000 vehicles.

Supported by the higher financing, Astra recorded a 22.6 percent surge in its bottom line in 2013 to
Rp 1.01 trillion.