Primary Market Remains Lighter This Week Amid Bearish Market
On the primary front, there are three new issuers offering bonds this week; i) Medco Energi, Tbk (MEDC IJ) (idA-/Neg) offering IDR750bn ii) Adira Dinamika Multifinance, Tbk (ADMF:IJ) (idAAA/Sta) targets IDR1trn issuance and iii) Chandra Asri Petrochemical, Tbk (TPIA:IJ, idA+/Sta) at IDR500bn. With these three bonds issuance, total corporate bonds this year will reach a total of IDR113trn, almost double than last year issuance. However, there is a possibility that the issuers might lower their issuance target as investors might demand high coupon rates amidst recent unfavorable market condition following Trump’s victory in US presidential election where it has led IndoGB’s yield crippling higher across the maturity curve in this week trading.
