JAKARTA (TheInsiderStories) – PT Pemeringkat Efek Indonesia (PEFINDO) said there are a total of 12 companies ready to issues Rupiah bond with targeting funds up to Rp15.5 trillion (US$1.08 billion). The issuers are involved in toll road, port, construction and airport sectors.
It said, as many as five toll road companies planned to offer Rp7.85 trillion, one port company Rp3 trillion, five constructions companies of Rp 2.4 trillion, and one airport manager is eyeing up to Rp2.25 trillion. Most of unds will uses for business development and pay the debts.
Earlier, state-owned construction firm, PT Waskita Karya Tbk (IDX: WSKT) had announced to offer local bonds Rp300 billion. The company has obtained a BBB rating from PT Fitch Ratings Indonesia, namely BBB.
The book-building period takes place on July 1-15, and listing on the Indonesia Stock Exchange on August 5. The underwriter are PT Bahana Sekuritas, PT BNI Sekuritas, PT Danareksa Sekuritas, PT DBS Vickers Sekuritas Indonesia, PT Indo Premier Sekuritas and PT Mandiri Sekuritas.
Other state-run firm, PT Jasa Marga Tbk (IDX: JSMR) also looking the bond market to raises around Rp5 trillion. The funds will uses to pay some debts will mature in this year.
Last May, PEFINDO has revised down this year’ corporate bond issuances from initial targets Rp158 trillion to Rp116.9 trillion caused of the COVID-19 outbreak. The revised target assuming the economic growth only 1.2 percent of gross domestic products.
“It changed because of a pandemic and there was an increased risk (in the market),” said Fikri Permana, the economist at the rating agency in a virtual press conference.
He emphasized, that the new target assuming the epidemic ended in August 2020. However, if the pandemic ended longer, the pessimistic target was only Rp96.4 trillion. The revision targets also considers the cost of issuance rises along with the increase in 10 years’ state bond yield to 7.5 percent from previous year at 6.5 percent per annum.
Until April 30, PEFINDO had received a debt rating mandate from 55 companies with a total emission value of Rp71.2 trillion. In detail, 30 state-owned enterprises (SOEs) and their subsidiaries with total emission Rp42.1 trillion. Then, from the private party were 25 companies with an emission value of Rp29.1 trillion.
The realization of SOEs bond issuances until first quarter of 2020 increased to Rp10.1 trillion from a year ago worth of Rp10 trillion. While, the value of private companies notes was Rp17.2 trillion, dropped 10.8 percent from the same period of 2019 of Rp19.3 trillion.
Chairman of the Financial Services Agency (FSA), Wimboh Santoso added, until May 8, total offering at the local bourse recorded Rp31.88 trillion, down by 34.2 percent compared to last year. However, in the pipeline, there are 61 issuers will conduct a public offering with an indicative value of Rp39.2 trillion, he adds.
The agency also reported in the fourth months of 2020, fund raising through the capital market worth of Rp28.3 trillion with 22 new issuers. In the pipeline there are 53 issuers that will conduct a public offering with a total indication offering of Rp21.2 trillion, said the agency on April 30.
In this year, the regulator targeting, total emissions in the stock and bond market to reach Rp200 trillion and 70 issuer become a listed company. Last year, public offering at the local bourse recorded Rp161 trillion and 60 firms listed at the Indonesia Stock Exchange.
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