JAKARTA (TheInsiderStories) – Indonesian Rating Agency (PEFINDO) revised down this year’ corporate bond issuances from initial targets Rp158 trillion Rp116.9 trillion (US$7.79 billion) caused of the COVID-19 outbreak, said the economist last week. 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 Pefindo 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.
Based on the agency data, the realization of SOEs bond issuances until first quarter of 2020 slightly increased to Rp10.1 trillion from a year ago Rp10 trillion. While, the value of private companies notes was recorded 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 told reporters today, 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, 61 issuers will conduct a public offering with an indicative value of Rp39.2 trillion, he adds.
The agency 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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