Kategori: Finance

Pemeringkat Efek Indonesia (Pefindo) has affirmed PT Bank Pembangunan Daerah Jawa Barat & Banten Tbk or Bank BJB (BJBR:IJ) ratings at ‘idAA-‘ with its outlook was revised to stable from negative. The similar rating also affirmed for its outstanding bond VII/2011. The outlook upgrade is driven by the sustainable recovery in Bank BJB’s asset quality..

BII Finance Center is currently offering two new series bond under the program of Shelf Registered Bond I Tranche I. Two offering bonds are; Series A (3 years) priced at 10.35% and Series B (5 years) at 10.90% coupon rate with the face value of IDR 300 billion and IDR 200 billion respectively. The bond.

Corporate flows were active on last week trading, led by multifinance and banks bonds. Total weekly flows were IDR 3,055 bn, rising from IDR1,778 bn last previous week. Trading frequency was also increasing, almost doubled from 283x last week to 493x. Trading activity last week was skewed to multifinance and banks bonds with a combined.

Indomobil Finance (IMFI) has conducted book building for Shelf Registered Bond II Tranche II with the coupon rate for 1y bond at 10.25%, higher 115 bps than its previously issued bonds on last April. Meanwhile, 3y and 4y bonds were priced at 10.75% and 11% respectively. They were both higher 75 bps than the last.

Indonesia corporate bonds were less active on last week trading amidst shorter trading days. We saw IDR 1,778 bn worth of trades only, lower 45% WoW while trading frequency was also down 28% WoW to 283x. We saw banks names mostly dominated trading activity in last week trading with a total of IDR 829 trades.

Indonesia corporate bonds yield tightened sharply on last week trading with the yields fell in all maturities curve supported by a relief rally of IDR which strengthened 8.4% WOW to IDR 13,412 per US dollar. Credit yield fell in all tenor bonds and rating classes by an average of 65 bps WoW. Flows also rose.

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.

Indonesia recent market volatility has caused some issuers to cancel the bond issuance this year. Las week, Tower Bersama Infrastructure Tbk (TBIG:IJ) has decided to cancel the sale of IDR 3.2 trillion bond from its remaining continuous bond I program due to unfavorable market condition. The company actually has completed the book building period for IDR.

We see Indonesia bond market prices have recovered in last week trading with  the yield on medium term bonds (5-7y) and long tenured bond (10y) tighten 7-11bps while short term bond only widen 3 bps. Recovery in corp bonds market was also seen in government bonds given foreign net sell minimized to Rp 1.2 trillion.

On rating front, Pemeringkat Efek Indonesia (Pefindo) has downgraded the outlook on two domestic banks namely Bank DKI and Bank Muamalat to Negative from stable. The downgrades were driven by the probability of further deterioration of their asset quality due to increasing trend of NPL and SML. Bank DKI’s NPL ratio spiked to 7.3% in.