CLSA invests $20m in Indonesian auto financing firm
CLSA Capital Partners (CLSACP) has agreed to pay $20 million for a minority stake in PT Sinar Mitra Sepadan Finance (SMS Finance), an Indonesian auto financing firm.
The investment was made through the $333 million Aria Investment Partners III fund, which closed in July. It is the fund's ninth investment as well as the first first direct investment in Indonesia by any ARIA vehicle.
SMS Finance provides retail credit for purchasing pre-owned vehicles such as cars and pick-up trucks. The company claims to have a pan Indonesian network of more than 100 branches and a base of more than 60,000 customers.
Richard Pyvis, executive chairman of CLSACP, said in a statement, “We like Indonesia and its economy is reaping the twin benefits of increased domestic consumption and a boom in the price of natural resources. The need for transportation of natural produce along with increased consumer spending power has driven the demand for autos and auto finance.”
CLSA noted in a release that the automotive industry in Indonesia is booming and annual new vehicle sales are expected to reach 1 million annually by 2014.
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