P.T. Summit Oto Finance, a Subsidiary of Sumitomo Corporation, will Issue Publicly Offered Corporate Bonds Guaranteed by The Bank of Tokyo-Mitsubishi UFJ, Ltd., and Japan Bank of International CooperationOn February 2, 2006, P.T. Summit Oto Finance (president: Djohan Marzuki; hereinafter, "SOF"), a subsidiary of Sumitomo Corporation (president: Motoyuki Oka), held a road-show meeting in Jakarta, Indonesia, in connection with its planned bond issue. An outline of the bond is as follows:
- Aggregate Issue Amount: 1 trillion rupiah (approximately 12 billion yen)
- Life: 2 to 3 years
- Offering Method: Public offering (for institutional and individual investors)
- Credit Rating: AAA is to be granted by PEFINDO (a local credit rating agency in Indonesia)
- Issue Date: Scheduled for late February 2006 to the beginning of March 2006 (depending on market performance)
- Guarantee (scheduled): The Bank of Tokyo-Mitsubishi UFJ, Ltd. (full guarantee of principal and interests) and Japan Bank of International Cooperation (reguarantee)
- Underwriter: P.T. ABN AMRO Asia Securities Indonesia
Sumitomo Corporation has promoted sales of mainly Japanese automobiles and motorcycles in Indonesia by way of retail finance through P.T. Oto Multiartha (president: Djohan Marzuki; hereinafter, "OTO"), a motor financing company, since 1996 and SOF, a motorcycle financing company, since 2003. New financing contracts in fiscal 2005 totaled 310,000 units with SOF and 76,000 units with OTO. As of the end of fiscal 2005, the number of branches of SOF and OTO was 63 and 44, respectively.
The accumulated face value of bonds issued by OTO from 2002 through 2005 reached 1.6 trillion rupiah (approximately 19 billion yen). The bonds to be issued this time by SOF will be guaranteed by The Bank of Tokyo-Mitsubishi UFJ, Ltd., and reguaranteed by Japan Bank of International Cooperation, which will help further promote the Asian Bond Markets Initiative proposed by the Japanese government.
With the net proceeds from the bond issuance, SOF will strengthen its efforts on promoting sales of Japanese motorcycles and contributing to the further development of the motorcycle industry in Indonesia.