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WOM Finance seeks to raise Rp4.5 trillion through bonds issue


The picture shows a model with a BMW motorbike during an international motor show last year (GIIAS 2015). WOM Finance is currently a major player in motorcycle financing. (Photo: RK)

JAKARTA (TheInsiderStories) – PT Wahana Ottomitra Multiartha Tbk (WOM), a consumer financing firm, is seeking to raise Rp4.5 trillion from Sustainable Bonds II WOM Finance issuance.

At a public presentation on Wednesday, the company revealed that as part of the Sustainable Bond program, WOM Finance will offer Sustainable Bonds II WOM Finance Phase I Year 2016 with a principal amount of Rp 800 billion in two series (Series A – 370 days with interest rate of 7.75-8.85 percent and Series B – 3 years with interest rate of 8.5-9.5 percent).

The proceeds from the bond issuance will be used as working capital for consumer financing activities.

Bond underwriters are PT Bahana Securities, PT Indo Premier Securities and PT Maybank Kim Eng Securities. The bond has been awarded with rating AA (idn) (Double A) by PT Fitch Ratings Indonesia.

President Director of WOM Finance, Djaja Suryanto Greenson said, the company’s good track record, strong projected cash flows and a healthy funding profile enabled WOM Finance to get a bond rating of AA (idn) (Double A). “We are optimistic that these bonds will be successful with the improvement in market conditions,” said Djaja Suryanto Greenson.

Bonds offered by current accounts have a guarantee of 60% of the outstanding principal and interest payment on a quarterly basis.

WOM Finance hopes to get an effective statement from the Financial Services Authority (OJK) on June 10, 2016, and conduct public offering period on June 14-16 June, 2016. The allotment was planned to be done on June 17, 2016 and the distribution of electronic bonds on June 21, 2016 and followed by listing on the Indonesian Stock Exchange (BEI) on June 22, 2016.

In 2015, WOM Finance recorded a total revenues of Rp1.74 trillion, increased from Rp1.56 trillion in previous year. Its revenues in the first quarter of 2016 has reached Rp458 billion and profit before tax of Rp26.9 billion, up significantly compared to the same period in 2015.

“WOM Finance with the support of the Maybank Group has a strong brand image as a reliable financing company. Backed by the right portfolio selection, WOM Finance has the capability to increase profits and grow the business,” said Djaja.

WOM Finance was established in 1982 under the name PT Jakarta Tokyo Leasing where the same year the name was changed to PT Fuji Semeru Leasing. Then in 1997, the Company’s name was changed to PT Wahana Ometraco Multiartha. Starting in 2000, the Company transformed into PT Wahana Ottomitra Multiartha, which is also known as “WOM” which provides financing for new and used motorcycles, for many brands of motorcycles.

In 2003, WOM Finance has entered the capital market by issuing Bonds I amounting to Rp300 billion. In 2004, WOM Finance became a public company through an Initial Public Offering and listing of shares on the Jakarta Stock Exchange and Surabaya Stock Exchange.

Currently WOM Finance is one of the largest motorcycle financing company that has more than 1 million customers and 180 nationwide service network throughout.

The shareholder structure:

  • PT Bank Maybank Indonesia Tbk 68.55%
  • PT Wahana Makmur Sejati 17.67% Public 13.78%


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Source: The Insiderstories
WOM Finance seeks to raise Rp4.5 trillion through bonds issue

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