In the next two weeks trading, Indonesia primary activity will be supported by some multifinance new bonds issuance. There are three companies preparing to release bond in the next two weeks; Toyota Astra Finance (TAFS), Indomobil Finance (IMFI) and BII finance. TAFS has closed its book building period on Friday last week while the book building period on IMFI and BII Finance are still rolling on until next week. IMFI is offering three series bonds; Serie A (1 year) with indicative coupon rate of 9.75%-10.5%, Serie B (3 year) with indicative coupon rate of 10.5%-11.25% and Serie C with 11-11.75% coupon rate. Meanwhile, BII finance will offer two bonds series only with lower coupon rate; Serie A (3 year) priced at 9.65%-10.35% while Serie B (5 year) prices at 10.35%-11.05%.
Elsewhere, we see TAFS coupon rate for its new bond offering was set higher 25 bps compared to its previous bond offering in last June. This is because of higher government bonds yields last week due to sharp IDR depreciation. TAFS is releasing two series bonds: Series A (1 year) offering 8.75% and Series B carrying 9.5% coupon rate. In addition, SAN finance able to compress its coupon rate up to 9.4%, lower by 10 bps than TAFS bond offering for the same tenor. We suspected this is due to SAN Finance’s bond was mainly bought by its affiliated company like its previous medium term note offering.