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Shelf Registration II WOM Finance Tranche II Year 2017

By administrator | June 16, 2017 | Finance.
Shelf Registration II WOM Finance

Illustration: Shelf Registration II WOM Finance

INDICATION BONDS OFFERED STRUCTURE
Bond Name : Shelf Registration Bond II WOM Finance Tranche II Year 2017
Bond Offered : IDR 1,000,000,000,000(one trillion rupiah) in principal amount
Rating : AA-(idn) (double A minus) from PT Fitch Ratings Indonesia

Maturity :
Series A (370-days)
Series B (3-years)

Coupon Indication :
As well as, Series A : SUN FR0066 + (175 – 225 bps), which represents the range 7.66% – 8.16%. Furthermore, Series B : SUN FR0031 + (215 – 265 bps), which represents the range 8.73% – 9.23%. Coupon Payment : Quarterly. Use of Proceeds : Working Capital. Listing : PT Bursa Efek Indonesia (“IDX”)

 

Shelf Registration II WOM Finance and Company Background

Wahana Ottomitra Multiartha, Tbk (WOMF IJ) was established in 1982, under the name of Jakarta Tokyo Leasing. In addition to, company engaged in the motorcycle financing services, particularly for motorcycles under the Honda brand. As well as, In 2000, the company changed its name to Wahana Ottomitra Multiartha in line with the company’s business transformation. Furthermore, this company no longer restricted its service exclusively for financing Honda motorcycles. Moreover, it is also covered the other Japanese motorcycle brands, such as Yamaha, Suzuki and Kawasaki.

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In fact, In 2005, the company became a part of Bank Maybank Indonesia, Tbk (BNII IJ) (formerly Bank Internasional Indonesia, Tbk) business group. Consequently,  after Maybank Indonesia acquired 43% share ownership in the company. As a result, In 2015, the company conducted a Right Issues through the Public Offering I. In addition to, Maybank Indonesia acted as the standby buyer. Finally, this Right Issue, the company issued 1,481,481,480 new shares. Last, Maybank Indonesia share ownership increased to 68.55%.

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Furthermore, to support the business growth and increase the financing product, in June 2016, the company issued the Serial Bonds II Tranche I Year 2016, that was listed as IDR665bn and rated AA(idn) (double A) by Fitch Ratings Indonesia (Fitch). Moreover, the company is support by 170 network offices and 3,000 employees for each 1 million active consumers. In fact, the company always maintains good relationship with more than 3,000 dealers.

SHAREHOLDERS COMPOSITION
As well as, Bank Maybank Indonesia, Tbk (238,664,672,900 shares) (68.55%). Second, Wahana Makmur Sejati (61,500,000,000 shares) (17.67%). Last, public (47,983,475,100 shares) (13.78%). Finally, total (341,148,148,000 shares) (100.00%).

THE MANAGEMENT
President Commissioner : I Nyoman Tjager
Vice President Commissioner : Robbyanto Budiman
Commissioner : Garibaldi Thohir
Commissioner : Thylagavaty Nadason
Independent Commissioner : Myrnie Zachraini Tamin

President Director : Djaja Suryanto Sutandar
Director/ Independent Director : Simon Tan Kian Bing
Director : Zacharia Susantadiredja
Director : Anthony Y. Panggabean
Director : Njauw Vido Onadi

BUSINESS SEGMENT
For financial year 2017, the company has prepared a set of corporate strategic, such as:
a. Increasing the profit margin by improving price schemes for new and used motorcycle financing.
b. As well as, enhancing the multipurpose financing composition by cooperation with telecommunication companies.
c. Optimzin process and productivity to increase cost-effectiveness and efficiency.
d. Furthermore, conducting periodic and continuous Employee Engagement Surveys to assess employee level of satisfaction to improve corporate management.
e. Moreover, doing Human Resources planning based on productivity.
f. Strengthening the foundation and infrastructure of the Company’s Information Technology (IT) through the Core System to support business growth.
g. Last, increasing the utilization of the mobile survey application to fasten the credit granting processed.
h. Increasing the utilization of the mobile collection application to improve portfolio quality.
i. Finally, reducing credit costs with healthier portfolio quality.

Shelf Registration II WOM Finance and Business Outlook

The company is optimistic that the global and domestic economics in 2017 will be increasingly improved. As well as, with the projection of the improved purchasing power and better inflation controlled in 2017.

As a result, it is expected that 2017 will be a turning point for enhancing the national economic condition that has been sluggish for the last several years. Furthermore, financing industry is also optimistic in facing 2017. As well as, states by the Indonesian Finance Services Association (APPI), the economy will grow up to 5% in 2017, after experiencing a slowdown in 2015 and 2016.

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Pace of the Economy Reflected Purchasing Power

The Low Core Inflation, amidst Low Purchasing Power Parity

In fact, WOM Finance itself projects a 14.8% financing growth, from 429 thousand units in 2016 to 493 thousand units in 2017. In addition to the improved economic condition factors, the company also assumes that several financial services-related policies to be implemented in 2017, such as relaxation in Down Payment (DP) regulations and policies related to Total Acquisition Cost (TAC) will act as a positive drive for the financing industry.

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Bank BCA Credit Growth 13% Support by All Segment

Bank Indonesia Predicts Credit Growth 12%

Bond Market Mixed amidst Bank Indonesia Meeting

Moreover, in 2016, the multipurpose financing was proved to be able to achieve a better margin and quality. Consequently, in 2017, the company will continuously encourage the additions in multipurpose financing composition. In addition to, the company will continue to provide the sharia financing as one of the financing alternatives for its customers. Last, the company will continuously implement the digital initiatives. As well as, previously conducted in 2016, to enhance its business process in 2017. Finally, the company will sustain the strategic cost management, to reduce the outflow and maximize the revenues.

BUSINESS RISK
Risk Related to Business Activities
a. First, Credit Risk
b. Second, Liquidity Risk
c. Operational Risk
d. Market Risk
e. Legal Risk
f. Reputation Risk
g. Strategic Risk
h. Last, Compliance Risk

Investment Risk For Bondholders
a. Liquidity Risk. As well as, the illiquid risk of bonds offered in the Public Offering is caused purpose of buying bonds as a long-term investment.
b. Default Risk. In fact, a risk resulting from the failure of the Company to make payments of interest and principal payable. Furthermore, at a maturity time or the failure of the Company to satisfy the other provisions stipulated in the contract bonds. Moreover, is the impact of the deterioration of the performance. Finally, development of the Company’s business which resulted in the Company experiencing financial difficulties.

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