What’s Alfamart expansion strategy in 2014 ?

Retailer PT Sumber Alfaria Trijaya Tbk (AMRT) issues Rp1 trillion bonds as a part of a shelf registration worth total Rp2 trillion, planning to refinance its short-term bank loans.

The operator of Alfamart mini markets will use about 70% of the bonds proceeds for refinancing its short-term revolving bank loans mainly from Bank Mandiri and BCA and the balance for working capital purposes. PT Bank Central Asia Tbk (BBCA) and PT Bank Mandiri Tbk (BMRI).

The retailer bond has received idAA- rating from PT Fitch Ratings Indonesia. It has appointed PT BCA Sekuritas, PT HSBC Securities Indonesia and PT Indo Premier Securities as the underwriters. The trustee is PT Bank Rakyat Indonesia Tbk.

Using the mix of loans and cash, the company will expense Rp1.8 trillion to Rp2 trillion this year for opening 1,200 new outlets. About 30% of its outlets are franchised while 70% belong to the company.

In the first quarter, Alfamart posted 60% drop in net profit to Rp10 billion because of higher financing cost and aggressive expansion in the past two years. It will refinance the short-term loan to change its credit profile as it needs long-term investment.

Source: PT Sumber Alfaria Trijaya Tbk (AMRT)
Director Tomin Widian

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