Jakarta (TheInsiderStories) – PT Pemeringkat Efek Indonesia (Pefindo) expect bond issuances until the end of this year could reach Rp130 trillion (US$9.15 billion). In the first half (1H) of 2019, the value worth of Rp80 trillion, said the management on Thursday (08/15).
So far, said SVP of Financial Institution Ratings at Pefindo, Hendro Utomo, the company had pocketed the corporate bond mandate of Rp48.69 trillion. Most of the issuance came from the new Sustainable Public Offering (SPO) of Rp13 trillion and the remaining from the last year’ SPO worth of Rp8.8 trillion.
In terms of the industrial sector, the issuer of the corporate bonds mostly came from the banking sector of Rp15.9 trillion then followed by the financing sector as much as Rp14.37 trillion, and pulp and paper around Rp8.2 trillion.
According to Fikri Permana, an economist from Pefindo, the challenge for the company in Indonesia in issuing bonds in the 1H was political risks. He noted bond issuances until July 2019 dropped from Rp92.0 trillion to Rp79.9 trillion.
However, his optimistic that the downward trend in the central bank benchmark rate will able to drive the number of bond issuances going higher in the 2H-2019. He stated, “Its hoped that until the end of the year the issuance of debt securities can reach Rp120 trillion to Rp130 trillion,” he said.
On the other hand, Indonesian government and state-owned enterprises (SOEs) has potential to issue bonds around Rp100 trillion in the second quarter (2Q) of 2019. Most of the amount will in government bond while six SOEs has reported to Indonesia Stock Exchange (IDX) to release bond around Rp13 trillion.
The six issuer’ bond issuance as follows PT PP Tbk (IDX: PTPP) Rp1.5 trillion, PT Semen Indonesia Tbk (IDX: SMGR) Rp4.9 trillion, PT Waskita Karya Tbk (IDX: WSKT) Rp1.84 trillion, PT Adhi Karya Tbk (IDX: ADHI) Rp2 trillion, PT Waskita Beton Precast Tbk (IDX: WSPB) Rp500 billion, and PT Kimia FarmaTbk (IDX: KAEF) Rp1.5 trillion.
The government estimated will issue a total gross State bond of 50-60 percent throughout the 1H of 2019, which includes retail government bond, foreign exchange government bond and regular government bond instruments. The total issuance value is around Rp128 trillion.
Finance ministry recorded the realization of the net government bonds issuance in the 1Q of 2019 reached Rp185 trillion and SUKUK issuance worth of Rp81.44 trillion. Totally, the bonds issuance value reached Rp266.44 trillion.
The directorate of general of financing and risk management at the ministry of finance stated that the total gross bonds reached Rp330.1 trillion in 1Q 2019. This value 39.98 percent of the bond issuances target throughout 2019 with the total amount Rp825.7 trillion.
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