Primary Activity in June Gets Lighter With New Deals Keep Flowing

We see primary activity was busy this month as new deals keep flowing. The ongoing offering are Indonesia Infrastructure Finance (IIF rated idAAA/stable) offering 3y (coupon: 8.0-8.25%), 5y (coupon: 8.45-8.70%) and 7y (coupon: 8.65-9.0%). We think the bonds will attract strong interest amid Otoritas Jasa Keuangan (OJK) planning to include certain percentage of state owned infra bonds into minimum investment regulation for non bank financial institution. Other ongoing new bonds offering is Medco Energi, Tbk (MEDC:IJ rated at idA+/Stabil) offering 3y (coupon: 10.30%-10.80%) and 5y bonds (coupon: 10.80%-11.30%) worth a total of IDR1.5trn. The bond is part of Shelf Registered Bond II program carrying a total of IDR5trn facility.

BNI Banks Issued IDR3trn Bonds

Primary Activity Boosted by Multifinance Bonds Offer

Primary Market Less Active During The Week

Corporate Bonds Sales Shadowed by Rising Govvies Yield

Indonesia Govvies Yield Spread Tightened in December