Search result for: "SOE"

PT Kimia Farma, Tbk (KAEF IJ) is issuing medium term notes (MTN) worth IDR1trn, which has permitted from the Ministry of SOEs (State Own Enterprise). MTN’s coupon at level 8.1%, and AA- rating received by PT Pemeringkat Efek Indonesia (Pefindo). For the record, the company will used the proceed to fund its expansion as well.

Krakatau Steel (Persero), Tbk (KRAS IJ) is preparing the installation of the 1x150MW Steam Power Plant (PLTU) project in mid December 2017. This project is still in the pre-qualification phase, being discussed with the investment committee. The power plant will be used to generate electricity at a low cost as a part of the effort.

Perusahaan Listrik Negara (PLN) holding continuous public offering (PUB) of bonds and Sukuk Ijarah II worth IDR10trn in total. During the stage one, the company will release IDR1.6trn bonds and IDR400bn Sukuk Ijarah II. The company offers 7.2%-7.7% coupon rate for A series (5-Years); 7.55%-8.1% for B series (7-Years); and 7.95%-8.5% for C series (10-Years)..

Adira Dinamika Multi Finance, Tbk (ADMF IJ) is to raise IDR2.01trn from bonds and IDR386bn from sukuk mudharabah or Islamic bonds. For IDR2.01trn bond sale, the company will offer as much as IDR913bn worth of one-year bonds with a coupon rate of 7.50%, IDR860bn worth of three-year bonds with a coupon rate of 8.60%, as.

Fitch Ratings has revised the outlook on Indonesia Eximbank to Positive from Stable. At the same time, Fitch did not raise outlook on other 3 SOE banks Bank Rakyat Indonesia, Tbk (BBRI:IJ), Bank Mandiri, Tbk (BMRI:IJ), and Bank Negara Indonesia, Tbk (BBNI:IJ) but affirming them at stable outlook in view that the government’s support on.

Total IDR corporate bonds issuance this year reached a record high of IDR112.8trn, up 80% from last year issuance. Primary issuance though remains less diversified as banking and multifinance sectors dominated the issuance. Banking and multifnance firms accounted for 46% and 32% of total issuance this year. Other sectors like transportation and telecommunication issued only.

Two AAA stated owned companies have set the final coupon rate on their new bonds where the rates were fixed closer to the upper end of its guidance. These two companies are Angkasa Pura I (idAAA/Sta) offering conventional and Islamic bonds worth IDR2.5 trn bonds and IDR500bn respectively and Sarana Multi Infrastruktur (SMI, idAAA/sta) offering.

Unlike government bond, demand for IDR denominated corporate bonds dominated by local investors. The biggest holders of local corporate bond is mutual fund with its ownership accounted for 25.6% of total outstanding. As of October 2016, mutual funds manages also recorded the biggest net buy this year as they added a total of IDR21 trillion.

We saw issuers continued to rush into primary market with two new names offering the bonds this week namely: Waskita Karya Tbk (WSKT IJ,idA-/Sta) and Medco Energi Internasional Tbk (MEDC IJ, idA+/Neg). Waskita Karya offering 5y bond of IDR900bn at 8.5% to finance its construction business and and projects in its subsidiaries. Meanwhile, Medco Energi.

Indonesia primary market is starting to get busy this week after seeing quiet week last month. The new bonds being offered at the moment coming from diversified sector with indicative prices seen getting lower compared to the last month issuance. Meanwhile, some companies also have announced their plans this week to get the bonds out.