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BFI Finance eyes $76 million from shelf-registration bonds
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BFI Finance's finance and treasury head Tonny Wijaya (left to right), Trimegah Securities capital market and investment banking head Lenie Febriana, BFI Finance finance director Sudjono and BFI Finance retail business director Sutadi greet investors during a gathering in Jakarta on Thursday. (JP/Anton Hermansyah)
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isted multifinance company BFI Finance plans to issue its third round of shelf-registration bonds, eyeing Rp 1 trillion (US$76 million) of proceeds to bulk up its financing capacity.
The 2016 shelf-registration bonds are divided into three series with tenors of one, three and five years, respectively. The coupon will be paid quarterly to the investors.
“We will offer returns of 8 to 8.75 percent for the one-year series, 8.75 to 9.5 percent for the three-year series, and 9 to 9.9 percent for the five-year series,” BFI Finance’s finance director Sudjono said at an investor gathering in Jakarta on Thursday.
Despite a recent downturn in the multifinance business due to a weak economic environment, BFI Finance still recorded double-digit growth. According to the latest report issued in June, the company saw a growth in assets and profit by 14 percent and 10 percent, respectively.
Automotive financing dominated the business, accounting for 81 percent of the total financing, followed by heavy equipment (11 percent), motorcycles (6 percent) and property (2 percent).
“In the last five years, our assets climbed 22 percent, while the industry only saw growth of 11 percent,” Sudjono added. (ags)
