Jakarta – PT Mandiri Tunas Finance (“Company”), a subsidiary of PT Bank Mandiri (Persero) Tbk, is offering Sustainable Bonds III Mandiri Tunas Finance Phase I 2016 (“Bonds”) with a maximum value of IDR 500 billion. These bonds are part of the Sustainable Public Offering (PUB) plan for Sustainable Bonds III worth a total of IDR 3 trillion.

 

The first stage of issuance of the automotive finance company bonds is divided into two series. Series A has a term of three years, and series B has a term of five years. These bonds have received an idAA+ (double A plus) rating from PT Pemeringkat Efek Indonesia (Pefindo). The rating obtained by the Company has increased from the previous rating of idAA (double A).

 

Coupon payments for the 2016 Mandiri Tunas Finance Continuous Bond III Phase I will be made every three months. The collateral is in the form of performing receivables of at least 60% of the value of the bonds issued by the Company. In issuing these bonds, the Company has appointed PT Mandiri Sekuritas as the Underwriter for the Bond Issue.

 

According to plan, the initial offering period (bookbuilding) will take place from 5-19 September 2016. Meanwhile, an effective statement from the Financial Services Authority (OJK) is expected to be issued on 29 September 2016.

 

Furthermore, indications are that the public offering period is scheduled for 3-4 October 2016, payment from investors on 6 October 2016, payment to issuers and electronic distribution on 7 October 2016. Meanwhile, listing on the Indonesia Stock Exchange (BEI) on 10 October 2016.

 

After deducting emission costs, the Company will use all proceeds from the Bond public offering for working capital for motor vehicle financing. The Company is a financing company supported by a strong funding source, namely PT Bank Mandiri (Persero) Tbk, and an extensive automotive dealer network, namely PT Tunas Ridean Tbk.

 

Currently, 51% of Mandiri Tunas Finance shares are owned by Bank Mandiri and the remaining 49% shares are held by Tunas Ridean. This full support from shareholders is one of the considerations for investing in Company Bonds.

 

Other investment considerations, namely the Company has a widespread office network and is supported by the strategic alliance of Bank Mandiri and Tunas Ridean, good relationships with banks and investors, good, healthy and conservative financial performance, as well as experienced and professional management. As of March 31 2016, the Company had 93 branch offices with a total of 3,672 employees.

 

The Company also has competitive advantages, including brand “Mandiri” which is strong in adding value added, sustainable funding sources through joint financing from Bank Mandiri, as well as financing all brands of car vehicles and has an extensive network of cooperation with dealers em> and Brand Holder Agent (APM).

 

Some of the business strategies implemented by the Company are focusing on new car financing, especially passenger cars, optimizing market development in cities at district level through opening branch offices and satellite offices at Bank Mandiri, expanding multipurpose financing such as for traveling, education, and home renovation.

 

In addition, Mandiri Tunas Finance will optimize alliances and cross selling with the Mandiri Group, especially Motor Vehicle Credit products, sustainable HR competency development, innovative development of financing products with competitive interest rates, development of various applications based on IT, optimizing corporate fleet financing, holding and participating in automotive exhibitions, as well as innovating marketing methods through digital marketing.

 

This year, the Company plans to open 10 satellite offices, namely in Baubau (Sultra), Poso (Central Sulawesi), Ternate (North Maluku), Air Molek (Riau), Pematang Siantar (North Sumatra), Penarik (Bengkulu), Pangkalan Bun (Central Kalimantan), Ketapang (Kalbar), Berau (Kaltim), and Melak (Kaltim).

 

 

 

Meanwhile, this year the Company will open a branch office in Luwuk (Central Sulawesi). Next year in Banyuwangi (East Java), Ambon (Maluku), Sorong (West Papua), and Jayapura (Papua).

 

The company targets new lending worth IDR 18 trillion in 2016, growing compared to last year's realization which reached IDR 17.14 trillion. During 2011-2015, the Company's CAGR of new lending reached 24.84%.

 

Meanwhile, in the first quarter of 2016, the Company's new lending increased 31.9% to IDR 4.87 trillion compared to the same period in 2015 of IDR 3.69 trillion. In the first quarter of 2016, of the new loans realized, 96% of them were new car financing, dominated by passenger cars (74%) and commercial cars (26%).

 

The market share of new car financing by the Company increased by 11.4% (yoy) amidst a decline in the automotive industry of 5.3%. The CAGR of the company's assets, liabilities and equity until 2015 exceeded 26%. Consumer financing receivables contributed the most to total assets as of March 31 2016 or 87% of total assets.

 

During 2015, the Company posted revenues of IDR 1.28 trillion, growing 33% compared to 2014 which amounted to IDR 964 billion. CAGR during 2011-2015 reached 36%. Meanwhile, in the first quarter of 2016, the Company's revenue rose 33% to IDR 384 billion, compared to the same period in 2015, namely IDR 288 billion.

 

The Company's net profit in 2015 reached IDR 307 billion, an increase of 31.1% compared to 2014 which amounted to IDR 234 billion. CAGR during 2011-2015 reached 48%. In the first quarter of 2016, the Company's net profit rose 18% to IDR 90 billion, compared to the same period in 2015 of IDR 76 billion. Meanwhile, the gearing ratio in the first quarter of 2016 was 6.64 times, ROA 5% and ROE 30%.

 

PT Mandiri Tunas Finance has won a number of awards including the Market Conduct 2015 award from the Financial Services Authority (OJK), The Best Multifinance Indonesia 2013-2015 from Economic Review Magazine, and multifinance< /em> “Very Good” 2013-2015 from Infobank Magazine.

 

In addition, the Company also received an award as a multifinance with the title “Trusted Company” in GCG 2014-2015 from SWA & IICG, multifinance was awarded “Excellent Company” 2015 from Economic Review Magazine, and “WOW BRAND” in the category of The Best Branding in Car Leasing 2015from Markplus Inc.