Oversubscribed Bonds Offering Marks Growing Indonesia Market Liquidity

The last two bonds offering this month received decent demand from investors. Recent new bonds offered by Sarana Multigriya Finansal (idAA+/Stable) was oversubscribed by 2 times registering a total demand of IDR 2trn yet the company only issued IDR630bn. Oversubscription was seen also in Federal Finance’s (FIFA) new continuous bonds offering that received IDR3.9trn demand, higher than IDR3trn initial target. Recent oversubscribed bonds offering should indicate that market liquidity in the bonds market are growing, particularly triggered by the capping of maximum deposit rates for big banks pushing some investors like pension funds to switch into higher yielded assets. As it is known that Financial Service Authority (OJK) has capped the maximum deposit rate for banks under BUKU IV and BUKU III classification at 75 bps- 100bps above Bank Indonesia rates.

Bank BTN Cut Non Subsidies Mortgages in Early 2018

Bank Mayora Maintains its Loan to Funding Ratio

Bank BCA Plans to Raise Lending Rate

Indonesia 2QGDP Growth Beats  Expectation

Bank Indonesia Lowered Policy Rate as Widely Expected