Bussan Auto Finance Prepares for Bond Maturity and Announces New Issuance

Upcoming Bond Redemption

PT Bussan Auto Finance (BAF), a majority-owned subsidiary of Mitsui & Co., Ltd., is preparing to redeem its Continuing Bond II Phase II Series B issued in 2022, which will mature on December 2, 2025. The company has allocated Rp545 billion to cover the principal repayment, along with Rp10.55 billion for the final interest payment. The funds will be transferred to the payment agent, PT Kustodian Sentral Efek Indonesia (KSEI), on December 1, 2025.

New Bond Issuance Details

Concurrently, BAF has conducted a public offering of its Continuing Bond III Phase IV 2025, amounting to Rp1 trillion. The bond is issued in two series:

• Series A: Rp100 billion with a fixed interest rate of 5.00% per annum and a tenure of 370 calendar days
• Series B: Rp900 billion with a fixed interest rate of 5.65% per annum and a three-year tenure

Utilization of New Bond Proceeds

The proceeds from the new bond issuance will be allocated as follows:

1. Rp545 billion will be used to fund the redemption of the maturing bond
2. The remaining amount will support the company's working capital for various financing activities, including:
   • New Yamaha motorcycle financing
   • Automobile financing
   • Quality used motorcycle financing
   • Electronics and furniture financing
   • MSME financing
   • Other permitted financing activities

Strategic Financial Management

This financial maneuver demonstrates BAF's proactive approach to managing its debt obligations while continuing to support its core business activities through strategic bond issuance. The company's ability to secure funding at competitive rates highlights its strong market position and investor confidence.