Bisnis.com, JAKARTA - The finance company (multi) PT Hino Finance Indonesia revealed the reasons for choosing the strategy of issuing Hino Finance Indonesia's 2022 Bond I bonds worth IDR 700 billion.

Hino Finance President Director Hajime Kawamura is optimistic that this initial bond issuance is an appropriate effort to diversify funding sources, as well as in line with the development of Hino Finance's financing business.

"Since our establishment in 2014, the majority of our funding sources are based on US dollars. Therefore, to support our business performance in Indonesia, this bond issuance is an appropriate diversification effort, especially in the rupiah currency," he said in a public expose on online bond issuance. , Monday (11/7/2022).

If the initial bond issuance is successful, Hajime said Hino Finance is interested in regularly issuing other debt securities, both in short and long term tenors.

Funds from the public offering of bonds after deducting commissions, fees and expenses related to issuance, will be used entirely for working capital in the form of financing for its business activities.

"We believe the bond issuance will have a positive impact on our financing performance and profit in semester II/2022. Moreover, Hino still has a loyal customer base that still looks conservative in expansion. We are optimistic that they will need more Hino trucks in the near future, and we will help in the financing process," he added.

For information, Hino Finance's shares are currently owned by Hino Motors Ltd. as much as 40 percent, Indomobil Multi Jasa by 40 percent, and Summit Global Auto Management B.V. by 20 percent.

Hino Finance is a commercial truck leasing specialist, particularly the Hino brand, to support sales of Hino products in Indonesia through financing solutions such as finance leases, sale and leaseback services, and other financing products.

 Hino Finance's new financing throughout last year was also mostly contributed by truck financing, the value of which was recorded to increase from Rp. 1.3 trillion in 2020 to Rp. 2.11 trillion in 2021.

In addition, minibuses and Jeeps still fell from Rp. 99.6 billion to Rp. 26.8 billion. Meanwhile, pickups and heavy equipment throughout 2020 were both nil, but in 2021 Hino Finance has disbursed financing worth Rp. 6.63 billion and Rp. 17.7 billion, respectively.

Hino Finance Indonesia's 2022 Bonds I will be issued in two series, where Series A has a fixed interest rate and has a term of 370 calendar days, while Series B has a fixed interest rate and has a term of 3 years.

The interest rate offered for Series A ranges from 4.00 percent to 4.75 percent, while for Series B it ranges from 5.75 percent to 6.75 percent. Bond interest will be paid every 3 months according to the respective payment date, where the initial payment will take place November 9, 2022.

Currently, the bonds from leasing, which focus on financing trucks, transport cars, and heavy equipment, are still in the initial offering period, starting today, Monday (11/7/2022) until Tuesday (19/7/2022).

The effective date is estimated to be on 29 July 2022, then the public offering period will take place on 2-4 August 2022. The allotment will take place on 5 August 2022, then distribution and listing will fall on 9 and 10 August 2022.

In order to issue bonds, Hino Finance has carried out a rating, in which Fitch Ratings rewarded an affiliated leasing company of PT Indomobil Multi Jasa Tbk. (IMJS) is at AAA(idn) aka Triple A.

Meanwhile, the implementing guarantors for the issuance of Hino Finance's initial bonds will be held by CIMB Niaga Sekuritas and DBS Vickers Sekuritas, with PT Bank Rakyat Indonesia Tbk as the trustee. (BBRI) aka BRI.

Hino Finance's total assets are recorded in a recovery trend, as they are still declining from their final 2020 achievement of Rp4.57 trillion, to Rp3.49 trillion at the end of 2021, then slightly increased to Rp3.62 trillion as of March 2022.

The decline in assets was mainly due to finance lease receivables as Hino Finance's main business line, which was still corrected from Rp3.5 trillion at the end of 2020 to Rp3.02 trillion at the end of 2021.

However, the value of new financing based on last year's Hino Finance financing object of IDR2.16 trillion has increased compared to 2020's IDR1.4 trillion.

Hino Finance's profit and loss performance has also recorded a growing trend, mainly thanks to efforts to increase expenses amidst revenue that is still correcting.

In detail, Hino Finance's net profit increased from IDR 34.43 billion in 2020 to IDR 57.83 billion. Meanwhile, profit during the first quarter of 2022 also rose to Rp. 15.56 billion compared to the same period of the previous year, which was Rp. 13.26 billion.