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Rocket Start Kick Off of GLF Indonesia.
02 Aug 2016
PT Group Lease Finance Indonesia(GLFI), a subsidiary of Group Lease PCL(GL) “Digital Finance company” in Indonesia achieved first contract in agriculture machine finance service on 25th of July 2016.
GLFI kicked off its business based on ARFC (ASEAN Regional Finance Company) vision to expand its “Digital Finance” to provide various products on its platform throughout ASEAN Market. The first contract was made at the official dealer of KUBOTA who is also a big and strong business partner in Cambodia.
In detail, the first contract was made at Lampung province in Sumatera Island. After that, GLFI had actually made 2 contracts on the first day and got 12applications within the first week. It was the first and trial week. The numbers of application as 1 POS are clearly out performed and above expected as first week.
In detail, the first contract was made at Lampung province in Sumatera Island. After that, GLFI had actually made 2 contracts on the first day and got 11 applications within the first week. It was the first and trial week. The numbers of application as 1 POS are clearly out performed and above expected as first week. The feedback made our managements satisfied and pleased to inform all our investor with full of confidence on our Rocket Start in this huge market with 230million population. GL stepped into the Rural Area of Indonesia which have 200million population with the Rocket Start which will be far faster growth than the successful achievements in Cambodia and Laos. Also, GLFI opened 2 more POS (Point of Sales) within the week.
Republic of Indonesia was composed of various sized 13,466 islands but GLFI will expand its business throughout nation especially focusing on rural areas where GLFI has a strong competence. GL group will make a big role in supporting economic growth and improvement of living standards in ASEAN region through its “Digital Finance Business”.
Find attached pictures below for first contract and delivery moments.
First customer for GLFI (PT Pilar Putra Teknik, Metro)
GLFI manager and dealer owner (PT Pilar Putra Teknik, Palembang)
Mr. Tatsuya Konoshita (Chairman of Executive Board and Director) on Money Talk Weekly
25 Jul 2016
Mr.Tatsuya Konoshita, GL chairman of executive committee, was interviewed with Thai language on Money Channel that aired on Friday, May 20, 2016. We are pleased to offer this program.
New Major Expansion for GL in Indonesia
12 Jul 2016
Now that the official license has been granted by the Indonesian authorities (OJK), SET-listed digital finance firm Group Lease Public Company Limited (GL) is embarking on a new, major expansion in Indonesia which is expected to support substantial growth both in terms of revenue and net profits over the next five years.
“Our Indonesian operations will kick off to a ‘rocket start’ because we have been waiting for the license for a long while and, in the process, have been making the various necessary preparations,” GL’s Executive Board Chairman Mr. Tatsuya Konoshita stated.
Spearheading the Indonesian operations will be PT Group Lease Finance Indonesia (GLFI), a joint venture between Group Lease Holdings PTE. Ltd. (GLH, a GL subsidiary based in Singapore which holds 65%), J Trust Asia (JTA, GL’s strategic partner which subscribes to GL’s latest batch of US$130 million convertible debentures, holding 20%) and local Indonesian partners holding the remaining 15%.
Mr. Tatsuya projected that the Indonesian operations will enjoy profit margins higher than that in Thailand and Cambodia and will turn profitable in a very short period – thanks to a new, fees-based model where GLFI will charge fees and commission from various lines of consumer financing it manages while its partner J Trust Bank (Indonesia), through its local network of 62 branches, provides the funding and is responsible for any NPLs.
Mr. Tatsuya added that GLFI will focus on agricultural machinery, second-hand motorcycles, assets-backed loans (such as cars and motorcycles), white goods (various types of electrical appliances) and solar panels. GLFI also plans to expand into new areas of financing for low-income people such as housing finance and household refurbishments. Since all preparations are ready, the company expected to sign the first client for agricultural machinery within this month.
Out of its base in Thailand, GL has been expanding successfully into the neighboring countries of Cambodia and Laos. Of the 222 million baht net profit in the first quarter this year, more than half or about 120 million was contributed from operations outside Thailand the bulk of which from Cambodia.
GL has attached a great deal of importance to the Indonesian business which represents a new phase of major expansion. GL Chairman & Chief Executive Officer Mr. Mitsuji Konoshita has stated that the Indonesian market, with its more than 250 million population, is ten times the size of the Cambodian market. “Significantly, about 70% of the Indonesian market is still untapped by anybody,” Mr. Mitsuji stated.
The digital finance platform that GL has successfully developed in Cambodia will now be implemented in Indonesia. According to Mr. Tatsuya, the fees-based model in Indonesia will bring net profit margin of more than 40% which is significantly higher than in Cambodia and Thailand.
GLFI is now projecting net profit for the first full year of operation in 2017 to top 120 million baht and, according to Mr. Tatsuya, profits from the Indonesian operations are projected to balloon to ten times the profits in Cambodia in five years’ time.
An extraordinary meeting of GL shareholders last month approved the issuance of US$ 130 million convertible debentures for JTA plus 170 million warrants (GL-W4) for GL shareholders. Carrying a conversion price of 40 baht each for both the debentures and warrants, the new funds that are being raised will be used to finance expansion in GL’s existing markets of Thailand, Cambodia and Laos as well as other markets in Southeast Asia and elsewhere. Funding in Indonesia will come from J Trust Bank (Indonesia) which can mobilise deposits from the local Indonesian market.
The GL Chairman Mr. Mitsuji stated recently that volatilities in regional financial markets as a result of Brexit would present good opportunities for mergers and acquisitions (M&As) since companies that are potential takeover targets will now become cheaper.
explanation for correct understanding- share hold by JTrust
04 Jul 2016
Dear Investors
Regarding to our strategic partner and shareholder of us, Group Lease Public company limited, JTrust ASIA PTE LTD.(JTA), the SET website will not show their name on the name of JTA itself since JTA will transfer their share into custodian service and in the SET system it shows as the custodian name.
It may confuse investors so we inform all the investors about this.
JTA is a company in the Group of companies of J Trust company limited which is a listed entity in Tokyo Stock exchange and one of the subsidiary is J Trust Bank which is our strategic business partner sharing an extra huge ambition of business expansion together in Indonesia with `Digital Finance` business model.
Even SET web site will not show JTA name, in fact JTA still hold 6.43% stakes, as same numbers of stocks as they converted without selling even 1 share of them. Using custodian service is a normal practice all over the world and not showing the name of the owner is normal in SET system. We confirm our valuable investors again that JTA never have any intention to sell the GL share at all and our strong relationship remain unchanged. Actually when we had issued Convertible Debenture to JTA, the contract state that JTA must hold all the shares at least 2 years.
Today we had already contacted to JTA again and make this announcement for them. JTA would like to confirm to the investors that JTA is GL’s strategic partner to expand our new, original and innovative business model ‘Digital Finance’ to the world and JTA had never sold their shares and have no intention to sell at all.
Regarding to this announcement please see below PR from us on 10 June 2016, too.
Brexit Presents New Opportunities for GL
27 Jun 2016
SET-listed digital finance firm Group Lease Public Company Limited (GL) expects new opportunities for mergers & acquisitions (M&A) in the regional markets and elsewhere as potential targets for takeover become “cheaper” because of sharp volatilities in the financial markets triggered by Brexit.
“There are always opportunities in any crisis,” asserted GL Chairman and Chief Executive Officer Mitsuji Konoshita. “Financially we are very strong. Our debt-to-equity ratio is only 0.5 and we are raising a lot of new funds. This is great for a crisis situation (like this),” he added.
Mr. Konoshita stated that there had been many offers in the past for GL to take over financial-services companies in the region but negotiations were inclusive because “they were too expensive”. But given the sharp volatilities in the financial markets triggered by Brexit, he expected that the prices for potential takeover targets would be cheaper now.
The GL boss is eyeing the M&A opportunities in Indonesia, Vietnam and Sri Lanka which are large markets for GL’s successful model of digital financing and carry enormous growth potentials into the medium- and longer-term future.
From a simple motorcycle-leasing company based in Thailand, GL has in recent years successfully expanded to Cambodia and Laos as it develops an efficient digital finance platform and expands its consumer-finance portfolios to cover agricultural machineries, solar panels and electrical appliances. It is set to launch new expansion into Indonesia shortly.
The new opportunities for M&A presented by Brexit has come after GL’s shareholders last week gave their consent for the company to issue 170 million warrants (GL-W4) which will be allocated to shareholders at the ratio of 9:1 (9 shares for 1 free warrant) at the exercise price of 1 warrant for 1 share for 40 baht over a two-year period.
Last week’s Extraordinary Shareholders Meeting (EGM) also approved the issuance of up to US$130 million convertible debentures for GL’s strategic partner J Trust Asia (JTA). The new funds from the convertible debentures and conversion of warrants will be used to finance expansion in GL’s existing markets of Thailand, Cambodia and Laos as well as other new markets in the Southeast Asian region and elsewhere.
Meanwhile, Mr. Konoshita reaffirmed that JTA has not sold any GL shares and would remain GL’s strategic partner as both groups join forces to expand their mutually-beneficial business in Indonesia and other ASEAN markets.
The clarification was necessitated after misunderstanding among some investors that JTA might have sold some GL shares after converting their first batch of US$30 million worth of debentures at the end of last year when JTA was listed as holding 98.1 million shares or equivalent to 6.43%.
The misunderstanding was caused recently when SET’s website listed JTA’s holdings as only 4.82% or amounting to 73.575 million shares. The difference, in fact, has been held by the Custodian.