KONTAN.CO.ID - JAKARTA. PT Mandala Multifinance (MFIN) or Mandala Finance said that the issuance of securities by multifinance this year is quite challenging.

Mandala Finance Managing Director Christel Lasmana said that the challenge of bond issuance was due to liquidity competition in the market.

"Therefore, in order to avoid dependence on one source of funding, such as bonds and other securities, we are trying to handle this by optimizing funding from other sources, such as internal cash and banking," Christel told Kontan, Thursday (20/2).

Despite the challenges, Christel said that Mandala Finance plans to issue bonds and sukuk this year. However, the issuance will be adjusted to the company's funding target plan, as well as the need for financing distribution targets.

"Of course, the plan to issue securities is also carried out to support various business initiatives and operational activities, as well as working capital needs in reaching and distributing appropriate credit to the community," he said.

Regarding offshore funding, Christel sees the prospect of offshore funding as highly dependent on global market dynamics, including global monetary and inflation policies. However, until now, he explained that Mandala Finance has no plans to conduct offshore funding.

"Mandala's funding sources still come from internal cash, banking, and securities," he said.

Christel said that Mandala Finance also implements various strategies to manage funding, namely by looking for sources that have competitive interest rates and maintaining a balanced composition between the various funding sources.

For information, PT Pemeringkat Efek Indonesia (Pefindo) noted that the issuance of debt securities by multifinance throughout 2024 reached IDR 30.92 trillion. Pefindo Fixed Income Analyst Ahmad Nasrudin said that the value was lower than the previous year.

"5.64% lower, compared to the previous year which was IDR 32.77 trillion," he told Kontan, Thursday (20/2).

Furthermore, Ahmad explained that there would be debt securities maturing from the multifinance industry worth IDR 30.60 trillion. The nominal covers 18.98% of the total debt securities maturing in 2025 or a value of Rp161.21 trillion.

Meanwhile, the issuance of multifinance debt securities until January 2025 is still relatively quiet. The value is only Rp0.80 trillion.