Again, Final Coupon on Indonesia SOE Bonds Final Set at Lower End of Guidance

Indonesia airport state owned company, Angkasa Pura II, released prospectus for Bond I/2016 this week citing the final coupon which is offered closed to lower end of its guidance prices during book building period. The prices are; 5-year at 8.60% (guidance: 8.5% -8.75%) with face value of IDR1trn, 7-year at 8.8% (guidance: 8.75%-9.0%) with face value of IDR100bn and 10-year at 9.0% (guidance: 9.0%-9.25%) carrying IDR900bn. The public offering will be held on 27 June and listed on July 1, 2016.

Indonesia Market Appetite Skewed Toward SOEs Bonds

Primary Activity in June Gets Lighter With New Deals Keep Flowing

Waskita’s New Bond Offering Lightens Primary Activity

Decent Demand for Indonesia PBS008 and PBS009

Indonesia Government Seen Keen Absorbing PBS009 and PBS012 on Low Demanded Yield

In contrast to Angkasa Pura II, The prices offered by Intiland Develoment, Tbk (DILD:IJ, A-/Stable) closes to its upper end of guidance prices they are; 3-year at 10.75% (guidance; 10% -11%) and 5-year at 11% (guidance; 10.25%-11.25%). These prices results for both bonds should indicate that the investors’ interest mostly concentrated toward state owned bonds as opposed to bonds from private companies, reflecting in the final prices of state owned bonds which is close to the lower end of guidance prices.

Berlina Domestic Sales Increase 11%

Indonesia 1Q Corporate Issuance Climbs 11% QoQ

SMRA Prices its 5y Bond at 10.5-11% and 3y at 11-12%

Customs and Excise Revenues 67.11% of Target

Third-Party Funds Banking Only Grew 6.3%