Jakarta, 16 November 2015 – Today, PT Mandiri Tunas Finance (“The Company”), one of the leading finance companies in Indonesia, announced its plans to issue bonds through a Sustainable Public Offering “ Sustainable Bond II Mandiri Tunas Finance” (PUB II) with a target of funds to be collected of Rp. 2,000,000,000,000,- (two trillion Rupiah).

 

As a first step in issuing PUB II, in the second semester of 2015, the Company will issue Sustainable Bonds II Mandiri Tunas Finance Phase I 2015 (“Bonds”) with a maximum nominal value of Rp. 600,000,000 ,000- (six hundred billion Rupiah)which will be issued in 2 (two) Series, namely, Series A Bonds with a term of 3 (three) years with an indicative coupon rate of 9.5% to 10.5% per year and Bonds Series B with a term of 5 (five) years with an indicative coupon rate of 10.15% to 11.15% per year.

 

Bond interest will be paid quarterly. To issue these bonds, the Company has received a long-term debt rating, namely _idAA (Double A) from Pefindo. The funds obtained from the proceeds of this Bond, after deducting issuance costs, will be used entirely for working capital for the Company's motor vehicle financing. The bonds offered by the Company will be guaranteed by a fiduciary guarantee in the form of performing receivables of at least 60% (sixty percent) of the principal value of the bonds outstanding.

 

The Company's Main Director, Ignatius Susatyo Wijoyo, said that the Company's good experience and track record, good operational management, strong cash flow projections and a good financing profile made MTF get a good Bond rating. ”We are optimistic that this bond will be successful,” said Ignatius Susatyo Wijoyo at Public Expose MTF Bonds, Monday ( 11/16). Acting as Underwriter for the Bond Issue is PT Mandiri Sekuritas. Meanwhile, acting as Trustee is PT Bank Mega Tbk.

 

“Excellent ratings, a reliable and experienced management team in the financing industry, strong profitability supported by performance and efficiency, are the basis for us, the underwriters, to guarantee this Bond,” said Donny Arsal,Director – Head of Investment BankingPT Mandiri Sekuritas, as underwriter for this bond issuance.

 

Company Performance in Semester I 2015

 

The company posted positive performance amidst weakening national automotive sales, both two-wheeled and four-wheeled. MTF succeeded in obtaining new financing during the second quarter (Q2) 2015 amounting to IDR 7.84 trillion, an increase of 9.31% compared to the same period last year 2014 which amounted to IDR 7.17 trillion.

The increase in new financing pushed MTF Q2-2015 revenue to increase 29.14%, of which 72% was income from Consumer Financing, 6% from Financing Lease and the remainder from interest income and others. As a result, MTF Q2-2015 profit for the current year increased 34.77% to IDR 152.7 billion from the same period in 2014 which amounted to IDR 113.3 billion.

 

Ignatius Susatyo Wijoyo explained that the composition of financing in Q2-2015 was still dominated by new cars, up to 95%. “The value of new car financing in Q2-2015 grew 13% compared to the Q1-2014 period, while on a unit basis  new cars increased 4.1%. "This is in line with the Company's business focus in the new car financing segment," he said. said Susatyo.

Positive financing growth caused financing receivables managed by MTF to increase 28.07% to IDR 23.6 trillion, including joint financing with Bank Mandiri of IDR 15.9 trillion. The level of non-performing loans or Non Performing Loans (NPL) can still be controlled at the level of 1.18%.

Susatyo also revealed that MTF's market share in new cars for the January period – June 2015 reached 13.7%, an increase compared to the same period in 2014 which reached 11.8% (based on Police Registration). This increase in MTF performance is an encouragement to continue positive growth considering that national car sales are experiencing weakness.