Indonesia SOE Bonds on the Market Radar

The planning to include 25% of State Owned infrastructure bonds to the minimum regulation government bonds portfolio for Non Bank Financial Industry (NBFI) will attract related SOE to issue more bonds. Bank Indonesia alone has requested SOE to issue bonds aggressively this year to absorb repatriated funds from the proposed tax amnesty program. This week, there are two SOEs issuers offering the bonds in the primary market; Pelindo I (idAA/Stable) offering 5 series worth a total of IDR1trn; 3 y (pricing: 8.25-9%), 5y (pricing: 9-9.5%), 7y ( pricing: 9.25-10%) and 10y (pricing: 9.5-10.25%) and  Waskita Karya, Tbk (WSKT:IJ rated at idA-/Stable) offered 3y bond of IDR2trn at 9.25%.

Sawit Sumbermas’s FFB Production Growth 25% YoY

Sentul City Targeting Pre Sales Marketing Growth 25%

Mitra Pinashtika Profit Increased 25%

Bank Indonesia Lowered Benchmark Rates to 7.25%

Expected Yield on Indonesia PBS011 (New Issuance) Reached 9.25%