0 Adira expects Rp 34 trillion in new financing

Publicly listed PT Adira Dinamika Multi Finance is aiming for an increase of around 5 percent in new financing this year amid ongoing lower motorcycle sales but increasing four-wheel sales nationally. Finance director I Dewa Made Susila said the company was looking to book Rp 34 trillion (US$3.5 billion) in new financing this year, up slightly from last year’s Rp 32.4 trillion. “Increasing car sales is one of the pillars [of the company’s financing]. Other supporting factors are the launching of low-cost green cars and Indonesia’s consumer confidence,” Made said on Monday on the sidelines of a company press conference on the issuance of debt paper. 

Adira saw total financing of Rp 32.4 trillion in 2012, slipping from Rp 32.6 trillion in 2011 in a flat market, particularly with regard to motorcycle sales, which were affected by the implementation of the higher minimum down-payment rule. Out of the total amount disbursed in 2012, financing for customers purchasing motorcycles dropped by 5 percent to Rp 19.4 trillion. However, the upside of this figure is that it compared favorably to the national motorcycle market, which saw a 12 percent drop in units sold, to 7.06 million from 8.01 million in 2011. Meanwhile, car sales in the country reached Rp 1.1 million units in 2012, a 25 percent increase on the previous year. 

“We are upbeat about motorcycle sales in the medium term, considering the country’s low penetration of motorcycles, the increasing purchasing power of consumers and poor public transportation,” Adira vice president director Marwoto Soebiakno said. Adira is planning to raise Rp 2 trillion from selling conventional bonds and Rp 500 billion in Islamic debt papers (sukuk) to support its business growth. The issuance is the first part of an issue of Rp 8 trillion conventional bonds and Rp 1 trillion sukuk. The company, which is 95 percent owned by Bank Danamon Indonesia, will start selling the bonds from Feb. 22 to 26 and is expecting to list the debt papers on the Indonesia Stock Exchange on March 4.

source : the jakarta post