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tate-owned financing firm PT Permodalan Nasional Madani (PNM) is looking to raise Rp 2 trillion (US$163.94 million) from continuous bond issuance to fund its expansion and refinance debts.

PNM president director Parman Nataatmadja said on Monday that the company planned to issue three series of debt papers for a five-year term, with Rp 500 billion to be raised during the first issuance.

The A series will mature after 370 days and carry around an 9.25-9.80 percent coupon rate while the B series has a maturity period of three years with a around an 9.75-10.5 percent coupon rate. The C series would mature after five years and offer around an 10-10.75 percent coupon, Parman said.

The debt papers have obtained an A rating from local ratings agency PT Pemeringkat Efek Indonesia (Pefindo). They will be on offered on Dec. 15-17 and will be listed on the Indonesia Stock Exchange (IDX) on Dec. 22.

PNM has appointed PT Bahana Securities and Indo Premier Securities as underwriters for the bond issuance.

As many as 80 percent of the funds generated from the debt-paper sale would be used for this year'€™s working capital, while the remaining 20 percent would be used for bank-loan refinancing and acquittal purposes, Parman said.

According to Parman, the company disbursed Rp 2.6 trillion in new financing by the end of October this year and expected to reach a target of Rp 2.8 trillion by year-end in maximum due to acquittals from customers.

As for outstanding financing, the company disbursed Rp 3.7 trillion as of October this year, an increase of 15.6 percent from Rp 3.2 trillion by the end of last year. The company currently served 79,600 customers, he said.

'€œOur gross lending is around Rp 200-250 billion per month, with non-performing financing [NPF] at 3.5 percent as of June this year,'€ he said at a press conference.

Parman said investors'€™ attraction toward the company'€™s continuous bond-offering plan signified support for the improvement of the country'€™s micro business as well as small and medium enterprise (SME) sector, especially in remote areas where access to financial institutions were still rare.

The company was focused on business in several sectors in the micro and SME segment, such as trading, handicrafts, home industry, agriculture and services, he said.

Parman further said that the company would propose to its stakeholders the addition of around 30 micro outlets (ULaMM) next year from 578 as of August this year to reach its target of Rp 3 trillion in new financing.

Meanwhile, PNM executive vice president Bambang Siswaji said the company had adequate funding until year'€™s end, including the Rp 500 billion from bond issuance.

'€œAside of the bond, we still have Rp 530 billion from previous medium-term notes [MTN] and Rp 1.5 trillion from existing bonds as well as Rp 1.3 trillion from bank loans,'€ he said.