The Credit Guarantee and Investment Facility (CGIF) issued a guarantee to Astra Sedaya Finance's (ASF) debut Singapore dollar bonds on December 18 2014. This marks the first time that ASF is tapping the offshore SGD market to diversify its funding sources at competitive rates.

"We believe that the multi-finance sector in Indonesia has strong long term growth potential and would like to encourage investors around the region to seriously consider investing in it," said Kiyoshi Nishimura, CGIF's chief executive officer.

"Via strong companies like ASF, regional investors will have an opportunity to support young Indonesians' aspirations of vehicle ownership and have an opportunity to enjoy the country's demographic dividends." he added.

ASF is engaged in the consumer financing, factoring, and car and motorcycle leasing activities in Indonesia. It operates in consumer financing, murabahah financing, and direct financing lease segments. The company was founded in 1982 and is headquartered in Jakarta, Indonesia.

This year, CGIF - a multilateral facility established by Asean+3 -- issued five guarantees in Indonesia, Singapore and Vietnam as it anticipates instigating more transactions that will take the regional local currency bond markets to new heights in the coming year, a company statement said.

HSBC acted as the lead manager and Societe Generale Corporate and Investment Bank was the deal structurer in the ASF transaction.