Kategori: Finance

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.

Indonesia banking sectors seek to broaden its long-term funding base through the issuance of debt securities those are believed to be cheaper than funding from customer deposits. Total fundraising from bonds market by banks sector year to date has reached IDR5.7trn. That number will increase as some listed banks will get the issuance out soon,.

On the rating front, Pemeringkat Efek Indonnesia (Pefindo) has upgrade the rating on BPD East Nusa Tenggara (BNTT) by one notch to idA/Stable fromA-Stable, driven by improved capitalization, better profitability and strong position in the captive market. Risk lies on the bank’s limited access to third party fund and pressure on asset quality. On other.

Indonesia corporate bonds issuance in the 1Q16 reached IDR13.68trn, up by 11% compared similar period last year. Issuances were mainly stem from banks and multifinance sectors unlike previous year. The biggest issuer was recorded by Bank Rakyat Indonesia (BBRI:IJ) (idAAA/Stable) which has issued IDR4.65trn in early February followed Eximbank (idAAA/Stable) with IDR4trn issuance size. In.

Indonesia primary market this week was active with at least three issuers offering new bonds, they are; Siantar Top (A/Stabil), Maybank Finance (AA+/Stabil) dan OCBC NISP (AAA/Stabil). Strong demand during the bookbuiding and lower govvies yield in the secondary market have pushed issuers to lower coupon rates. Maybank Finance priced their 3 year and 5.

There were there corporate downgraded by Pemeringkat Efek Indonesia (Pefindo) last week. Buana Finance (BFIN:IJ) was downgraded to idBBB+/Stable from ‘idA-/Negative mainly driven by ongoing pressure on its financing lease business that resulted in weakening market position due to lower new booking since FY2014. The declining asset quality and lack of affiliation also weigh down.

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,.

Pemeringkat Efek Indonesia (Pefindo) raised the rating on Sarana Multi Infrastruktur (SMI) to AAA from AA+ with the outlook maintained stable. The upgrade was driven by stronger government support as reflected by a capital injection of IDR20.4trn last year. This rating reflects the company’s status as critical government related entity, the high potential demand for.

Indonesia primary market was seen lighter in February with a total bonds issuance reaching IDR9.69trn versus IDR760bn in January. Total year to date issuances sum up to IDR10.45trn, it was doubled than last year issuance that amounted only IDR5.07trn in the first two months of the year.  Bank BRI was recorded as biggest issuer so.

Indonesia Bank Pembangunan Daerah Sulawesi Selatan and Barat’s (Bank Sulselbar) rating and its outstanding bond I/2011 were upgraded to ‘idA+’ from ‘idA’. The rating on bank’s sukuk mudharabah I/2011 was also upgraded to ‘idA+(sy)’ from ‘idA(sy)’ with a stable outlook. The rating upgrade due to its financial indicators are continuously improved including capitalization and asset.