BCA Finance seeks IDR19 trillion financing

JAKARTA: PT BCA Finance set target of financing at IDR19 trillion or increases by 27.5% compared to realization of new financing of IDR14.9 trillion throughout 2010.BCA Finances President Director Roni Haslim said the last years achievement has exceeded its target of IDR14.9 trillion as set at early year in line with the high credit demand for four-wheel vehicles.We remain focusing on four-wheel vehicle after last years achievement exceeded the target of IDR13.5 trillion as financing has arrived at IDR14.9 trillion, he told Bisnis, yesterday.Roni assessed the automotive sales has showed improvement. In fact, the national new car sales last year has exceeded the estimation and hit a record in the history of national car sales at above 700,000 units.It is, he added, in line with Indonesia's economic, social and political situation that are all favorable.In addition, in term of economy, despite the inflation hike by the end of last year, it still at acceptable level.The condition led Bank Indonesias interest rates used as benchmark for banking and financing in running the businesses could be maintained at 6.5%.Most of the automotive sales particularly cars in Indonesia is conducted through credit.The company plans to issue IDR1 trillion bonds in order to reach the target. Currently, BCA Finance has appointed three underwriters for the listing in May this year, i.e. PT Bahana Securities, PT DBS Vickers Securities Indonesia, and PT Transasia Securities.The company has prepared the payment of bonds maturing in 2011 by using bank loan facility which has not been tapped or funds derived from operating activities, such as consumer installment or corporate profit.This is the companys fourth bonds issuance after issuing convertible bond III/2010 and subordinated bond I/2010 totaling IDR600 billion.Bond maturityRoni said the bond will be issued in four series maturing in 12 48 months.He also added that the company has booked an unaudited net income as much as IDR577.4 billion or increased by 49% compared to IDR387.8 billion net income in 2009.Meanwhile, the company's assets as of December 2010 reached IDR3.15 trillion or increased by 56% compared to previous year. The equity also increased by 47% to IDR1.2 trillion. (T06/NOM)