New rule related to the issuance of debt or SUKUK notes without public offering, including medium term note (MTN) rule, will take effect today (06/01) - Photo: Special

JAKARTA (TheInsiderStories) – The issuances of corporate bonds is expected to be more vigorous in 2020 with worth of US$12.05 billion, said Indonesian Bonds Price Appraisal (IBPA) on Wednesday (10/16). This is inline with the conducive condition after the presidential election.

The projection, said the director Wahyu Trenggono, are based on the previous cycle that occurred in 2015, after the 2014 presidential election was completed. According to him, in the political year, companies generally hold the business expansion because it is full of uncertainty.

This year, the issuance of corporate bonds around Rp130 trillion. The target is considering the maturity of corporate bonds this year worth of Rp90.28 trillion. Until October, the corporate debt issuance has reached Rp94.05 trillion and Rp15 trillion is still in the pipeline that will be published in the near future.

“When compared with 2018, the bonds issuance of this year will tend to slow down because it coincides with the politics matters,” he said.

While, Indra Kampono, president director of PT Fitch Ratings Indonesia, said the prospect of issuance of corporate debt in this year will be same with last year, but lower than the initial expectations of market players around Rp150 trillion.

The reason, was the companies on wait and see position and the cancellation of the issuance plan, which was mainly due to domestic instability. Data from the Indonesian Central Securities Depository showed, there are 52 companies that have issued 222 series of debt securities, both in the form of corporate bonds and Islamic bonds

Last year, the bond and SUKUK maturing in this year were recorded Rp91.16 trillion, consisting of 68 issuers with the issuance of 145 companies.

Earlier, Indonesian Stock Exchange (IDX) reported there was potential corporate bond issuances Rp22.9 trillion until the end of this year, majority issued by banking and financial sectors. So far a total of Rp87.77 trillion bonds has been listed at the local bourse.

Based on the self regulatory office data, the largest emission value will be issued by state-owned lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) worth of Rp5 trillion. Other banks are PT Bank CIMB Niaga Tbk (IDX:BNGA) Rp2 trillion along with subordinated bonds  worth of Rp1 trillion, PT Bank Tabungan Pensiunan Nasional Tbk (IDX: BTPN) and PT Bank Mandiri Taspen Rp1 trillion, each.

And, from the financing sector, namely PT Bussan Auto Finance and PT BCA Finance with a value of Rp1.5 trillion and PT Adira Dinamika Multi Finance Tbk (IDX: ADMF) wRp1.19 trillion. Then followed by two state-owned companies, PT Waskita Karya Tbk (IDX: WSKT) Rp3.5 trillion and PT Perusahaan Listrik Negara (PLN) Rp1.91 trillion also ijarah sukuk Rp797.50 billion.

Moreover, state-owned rail operator PT Kereta Api Indonesia also seeking funds from bond market, eyes Rp2 trillion. Followed by PT Voksel Electric Tbk (IDX: VOKS) to raises Rp500 billion through bond market.

Until Sept. 26, 2019 the IDX registered 76 corporate bonds and SUKUK issuances with total amount Rp87.77 trillion from 42 companies. Its expected by the end of this year’ total corporate bond issuances reached Rp110.67 trillion. This amount is still far from the initial targets of PT Pemeringkat Efek Indonesia amounted to Rp130 trillion.

OECD sees global corporate bonds are predicted will reached $4 trillion until 2022, amid the obligation of non-financial companies to refinance of their loans. The unit of the World Bank Group stated, since the financial crisis in 2008 non-financial companies have dramatically increased their borrowing in the form of corporate bonds.

US$1: Rp14,100

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