KONTAN.CO.ID - JAKARTA. A number of finance or multi-finance companies have started issuing bonds. This method is used to obtain additional company funding to support working capital financing.

PT Toyota Astra Financial Services (TAF), for example, is again offering Sustainable Bonds IV Toyota Astra Financial Services Phase II 2023 worth IDR 625 billion.

This phase II bond issuance will be divided into two series, first series A bonds, offering a principal amount of IDR 401.43 billion with a fixed interest rate of 6.00% per year, interest payment frequency of three months and a tenor of 370 days from the date of issuance.

Second, series B bonds, offering a principal amount of IDR 223.56 billion with a fixed interest rate of 6.35% per year, interest payment frequency of three months and a term of three years.

"All proceeds from the bond issuance will be used as working capital for motor vehicle financing," said TAF Marketing Communication and Public Relations, Reynatta Ludy Adha to Kontan.co.id, Thursday (14/9).

Ludy explained that the funding collected by TAF was dominated by bank loans. If you look at the financial report, the portion of TAF bank loans reached IDR 24.66 trillion, while from bonds it amounted to IDR 1.01 trillion as of June 2023.

"A lot of TAF's funding comes from bank loan facilities, in the future TAF will still use these loan facilities and issue bonds," he explained.

Ludy said that the funding portion from bonds in August 2023 reached 10% of TAF's total funding. According to him, the bond interest currently given is quite competitive.

"The interest on bonds issued by TAF is at a fixed interest rate," he said.

The public offering of the 2023 Toyota Astra Financial Services IV Sustainable Bonds Phase II will take place on 26-27 September 2023. Meanwhile, the allotment date is 29 September 2023, and the listing date on the IDX is 4 October 2023.

Previously, TAF had also distributed Sustainable Bonds IV Toyota Astra Financial Services Phase I 2023 with a value of IDR 1.5 trillion. The target for funds raised in the Toyota Astra Financial Services Sustainable Bonds IV is IDR 5 trillion.

The public offering of the 2023 Toyota Astra Financial Services IV Sustainable Bonds Phase II will take place on 26-27 September 2023. Meanwhile, the allotment date is 29 September 2023, and the listing date on the IDX is 4 October 2023.

PT Mandiri Tunas Finance (MTF) will also conduct a public offering of Sustainable Bonds VI Mandiri Tunas Finance Phase III 2023 amounting to IDR 1.13 trillion.

This bond offering is divided into two series, the first series A offers a principal amount of IDR 804.17 billion with a fixed interest rate of 6.50% per year, interest payment frequency of three months and a tenor of three years from the date of issuance.

Second, series B bonds, offering a principal amount of IDR 326.93 billion with a fixed interest rate of 6.75% per year, interest payment frequency of three months and a term of five years.

"The bond issuance funds will be used as working capital to finance the Company's motor vehicles," said MTF Corporate Secretary, Arif Reza Fahlepi to KONTAN.

Reza said that the largest source of MTF funding currently comes from bank loans. Meanwhile, MTF bank loans reached IDR 16.68 trillion, while bond issuance amounted to IDR 4.34 trillion as of June 2023.

"Future MTF funding plans will adjust to market interest rate conditions," he said.

He said that the bond portion contributed around 22% of the company's total funding as of August 2023. Reza said that bond interest would be adjusted to market conditions.

"To anticipate rising or falling bond interest, what is done is to use other funding alternatives," he added.

Previously, it had distributed Sustainable Bonds VI Mandiri Tunas Finance Phase II 2023 with a value of IDR 691.73 billion. The target for funds raised in Mandiri Tunas Finance VI Sustainable Bonds for 2023 is IDR 5 trillion.

The public offering of Sustainable Bonds VI Mandiri Tunas Finance Phase II 2023 will take place on 21-22 September 2023. Meanwhile, the allotment date is 25 September 2023, and the listing date on the IDX is 29 September 2023.

Meanwhile, PT Wahana Ottomitra Multiartha Tbk (WOM Finance) also has funding sources from bank loans and bond issuance.

WOM Finance Director, Ring Lisa Hadi said that this funding source was carried out to obtain funding at competitive interest rates and as a form of diversification of funding sources.

"(The funding portion) is 61% bank loans and 39% bonds," said Lisa to KONTAN some time ago.

Apart from that, PT Adira Dinamika Multi Finance Tbk (ADMF) is also diversifying its funding because this is considered to minimize risk.

Adira Finance Finance Director Sylvanus Gani Mendrofa said that almost 50% of the funding came from joint financing from the parent company. Apart from that, funding is carried out by issuing bonds and sukuk and the rest is loans from banks.

"Adira Finance's issuance of bonds and sukuk in the first semester of 2023 is IDR 1.7 trillion for bonds and IDR 300 billion for sukuk," said Gani.