JAKARTA. Financing company PT Bussan Auto Finance (BAF), which is owned by Mitsui & Co Ltd, plans to issue a Rp 485 billion sukuk mudharabah to repay its maturing debts and as financing capital.
According to BAF's management, the sukuk mudharabah is part of Shelf-Registered Sukuk Mudharabah I BAF with a maximum proceed target of Rp 500 billion. In the first phase, the company issued a Rp 15 billion sukuk.
In an official offering summary, BAF said the sukuk will be issued in two series': Series A worth Rp 373 billion with a tenor of 467 calendar days and Series B worth Rp 112 billion with a three-year tenor since the issuance date.
50% of the proceeds will be used to repay a loan facility to PT Bank ANZ Indonesia and Bank MUFG, while the remaining 50% will be used to support consumer financing activities.
BAF's sukuk has been awarded an AA(idn) rating by Fitch Ratings Indonesia. For the offering, which is scheduled on 15 October 2020, BAF has appointed PT Indo Premier Sekuritas as an underwriter. (KR/MS)