UT to subsidize its buyers

By Peni Pedriawan

IDX-listed United Tractors Tbk has on July 5 purchased Rp100 billion worth of Medium Term Notes seri A from PT Surya Artha Nusantara Finance (SANF), maturing on July 5 2015. The company said it also considers the option of purchasing the remaining two medium term notes at Rp200 billion, amounting to a total of Rp300 billion.

UT said that the fund will be used to subsidize its customers, offering lower interest rates for buyers of its heavy equipment units. "We hope that this (financing) strategy will allow us to gain more or sustain our market share amidst tougher competition and weakening commodity prices," the company said.

Previously on July 4, SANF signed Medium Term Notes III Issuance Agreement with Bank Rakyat Indonesia (BRI) to issue three serial medium term notes, namely Medium Terms Notes seri A that will mature on Juli 5, 2015, Medium Terms Notes seri B that will mature on August 6, 2014 and Medium Terms Notes seri C that will mature on September 10 2013, each at 5.25 percent fixed interest rate.

Editing by Audy Zandri