BRI Finance Issues IDR 500 Billion Bonds

Photo: Doc. Antara

JAKARTA - PT BRI Multifinance Indonesia (BRI Finance) will issue II BRI Finance bonds in 2023 amounting to IDR 500 billion on June 30 - July 4, 2023 to strengthen the company's funding structure.

BRI's Managing Director and Business Director, Primarono Gunawan, said that all proceeds from the bond public offering, after deducting the cost of emissions, will be focused on strengthening the funding structure going forward.

"All funds will be used for the company's business expansion, namely the provision of consumer financing facilities, network expansion and business potential with the support of the BRI Group synergy. In addition, to support the diversity of products and services, as well as sustainable digital transformation by expanding collaboration with the marketplace and perfecting business processes," said Primartono in a written statement, quoted from Antara, Friday, June 16.

The company plans to issue debt securities in two series, namely Series A with a tenor of 370 calendar days with an offering coupon range of 5.75 percent - 6.35 percent, and Series B with a tenor of three years with an offering coupon range of 6.35 percent - 7.00 percent from the emission date.

Interest rates will be determined later. The initial offer of BRI Finance bonds will begin on June 14-21, 2023, with plans to be listed on the Indonesia Stock Exchange (IDX) on July 10, 2023.

Primartono revealed that the Company is targeting total assets of more than IDR 10 trillion by 2024, as well as One Stop Consumer Financing.

"The issuance of these bonds is one of BRI Finance's strategies to balance the composition of long-term and short-term funding. The company focuses on consumer financing which has characteristics of long tenors and fixed interest rates with the target of becoming the leading multifinance with total assets above IDR 10 trillion by 2024," said Primartono.

The Company's strategy in the 2023-2025 period is the expansion of the work network, process simplification, strengthening risk management, implementing joint financing, and strengthening BRI Group's referral synergy.

In addition, there is also an increase in used car products and fund facilities, device automation, expansion of coverage for marketing areas, and synergy and cross-seling through the digital platform from BRI Group to BRI Finance.

In this corporate action, BRI Finance has held an idAA or double A rating from the PT Pemeringkat Efek Indonesia (Pefindo) ranking institution.

The underwriters for the bond issuance from BRI Finance are PT BRI Danareksa Sekuritas and PT BCA Sekuritas, while the trustee of PT Bank Negara Indonesia (Persero) Tbk.

For information, in 2022 BRI Finance's total assets grew 39.7 percent to IDR 7.3 trillion, from IDR 5.2 trillion in 2021. Then the company's financing rose 37.2 percent, from IDR 3.7 trillion in 2021 to IDR 5.1 trillion in 2022.

Of the total financing, consumer financing rose 56.6 percent on an annual basis (yoy) to IDR 3.4 trillion from IDR 2.2 trillion. Commercial financing also grew 13.3 percent to IDR 1.4 trillion from IDR 1.2 trillion.