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uto finance company PT BII Finance Center and integrated transportation business PT Serasi Autoraya are seeking billions from the country’s corporate bond market, in which offerings are usually oversubscribed for high yields.

BII Finance announced on Monday that it would try to garner Rp 625 billion (US$66 million) from issuing three series of bonds.

The amount had been increased from the previous Rp 500 billion after the company saw its initial offering was two-times oversubscribed.

According to published documents, BII Finance expects Rp 101 billion from its A series, which give a 6.5 percent return with a maturity period of 370 days.

From the B series, the company is seeking Rp 381 billion by offering a 7.9 percent coupon rate with a three-year maturity period.

The last series, C series, offers a coupon rate of 8 percent with a maturity period of four years and which is expected to produce Rp 143 billion for the company.

“In the bonds issuance, the company has obtained an AA+ bond rating, a stable outlook, from PT Fitch Ratings Indonesia,” the company said in the publication.

BII Finance, which is 99.99 percent owned by publicly listed lender Bank International Indonesia, has appointed PT NISP Sekuritas as the underwriters for the issuance and Bank Permata as the trustee.

The company recently said that funds to be raised from the issuance would be used to boost its consumer financing. BII offered the bonds on Monday and is expecting to launch them on the Indonesia Stock Exchange (IDX) on June 8.

Meanwhile, Serasi Autoraya is eyeing Rp 750 billion from issuing four series of bonds. The series, from A to D, will be offered with maturity periods of 370 days, two years, three years and four years respectively. The company has yet to reveal coupon rates or the amount of each series.

Serasi Autoraya said that it would use funds raised from the issuance to purchase about 3,000 multi purpose vehicles (MPV), pick up trucks, box vans, trucks, buses or other vehicles that would be leased, in line with the company’s main business.

“Those vehicles will be purchased from affiliated companies [Astra] and third parties,” the company said in an announcement on Monday. The company is 100 percent owned by diversified conglomerate PT Astra International.

Serasi Autoraya has appointed four underwriters for the issuance; PT Victoria Securities Indonesia, PT Indo Premier Securities, PT Mandiri Sekuritas, PT OSK Nusadana Securities Indonesia. The company has also appointed Bank Mega as trustee.

The company has obtained an A rating from Indonesian rating agency PT Pemeringkat Efek Indonesia.

Serasi Autoraya, which has four business lines — rental services, used car sales, logistics and general transportation (taxi operations) — reaped Rp 4.8 trillion in revenue in 2011, a 36.19 percent jump from the Rp 3.56 trillion a year earlier.

The increase was supported by growth of 25.98 percent in its rental business as the company had more units in operation; 30,979 units last year compared to 25,093 units in 2010. It also saw increased used car sales to 15,910 units last year from 12,462 units in 2010. The land transportation business also grew with a further 470 trucks in operation. Meanwhile, sea transportation services also made a higher contribution with 126 deliveries last year.

Serasi Autoraya’s net profits stood at Rp 263.04 billion last year, increasing by 10.94 percent from Rp 237.11 billion in 2010.

—JP/ Raras Cahyafitri