Bisnis.com, JAKARTA— PT CIMB Niaga Auto Finance (CNAF) is offering CIMB Niaga Auto Finance Sukuk Wakalah Bi Al-Istitsmar I for 2023 with a target of issuing IDR 1 trillion. This step of issuing sukuk also brings the company closer to investors so that in the future it becomes a public company through an initial public offering (IPO) scheme.

CIMB Niaga Finance President Director Ristiawan Suherman said the public offering was intended to support business improvement in 2023. The offering of sukuk is also closer to investors, thereby facilitating the process to take the floor on the Indonesia Stock Exchange through an initial public offering (IPO).

"So we hope [with the sukuk beforehand] investors can become more familiar with CIMB Niaga Auto Finance. Through CIMB Niaga Auto Finance's 2023 Bi Al-Istitsmar I Bi Al-Istitsmar I Sukuk, we hope to provide innovative products that we hope investors will be interested in with the hope that they will be oversubscribed," said Ristiawan at the Financial Hall, CIMB Graha Building, South Jakarta, Tuesday (10/10/2019). 1/2023).

Meanwhile, the offered sukuk is expected to support the continued improvement of CIMB Niaga Auto Finance's business performance this year.

CNAF divides the offered sukuk into two series. First Series A with yields of 6 to 7 percent for a period of 370 calendar days. Second, Series B with a yield of 7 to 7.75 percent for a period of 3 years from the date of issuance.

Payment of yields will be made quarterly. Meanwhile, the principal payments for Series A and Series B bonds will be made in full or in bullet payments of 100 percent at maturity.

Ristiawan added that CNAF will also continue to innovate by providing the best service through digitalization as the economy improves, especially from the automotive industry. Moreover, according to him, the good national automotive sales growth has had a positive impact on the company.

As an illustration, the Association of Indonesian Automotive Industries (GAIKINDO) noted that sales of four-wheeled motorized vehicles from factories to dealers grew 21 percent from 393,466 units in semester I/2021 to 475,030 units in semester 1 of 2022. This growth has also boosted the company's performance.

"The company will always be present to provide services and products that are needed by the community through an appropriate acquisition process using credit scoring-based analysis and customer profiles (risk-based analysis). In addition, the Company continues to carry out various risk management initiatives to continue to maintain asset quality," said Ristiawan.

On the other hand, PT CIMB Niaga Sekuritas Director Martin Simorangkir assessed that the automotive industry had proven to be able to grow rapidly after the Covid-19 pandemic. This, of course, encourages the financing industry to continue to grow optimally in line with the economic recovery during 2021 and 2022.

"For this reason, we are optimistic that CIMB Niaga Auto Finance's corporate action of the Bi Al-Istitsmar I Bi Al-Istitsmar I corporate offering will be an attractive alternative investment product for current investors," he said.