Tuesday, 1 July 2014

17 EMITTENTS CONTRIBUTE TOTAL BOND EMISSION OF RP15.68 TRILLION



Through Q-1 2014, it seemed there was no positive signal of corporate bond emission. At the moment businessplayers were still waiting for the fi­nal outcome who the next President would be on July 9 next. Besides, as known, BI's benchmark level was rated as still supportive.

As quoted from BEI's release on Friday [6/6] listed bonds or Sukuk released came to Rp 15.68 trillion submitted in 17 emission by 17 erniitents. The total release of bonds increased with posting of Indonesia continued bonds Eximbank phase II by the Indonesian Export Financing Agency.
The bonds which totalled Rp 4 trillions con­sisted of 4 series, i.e. serie A worth Rp 803 billon with tenure of 370 days, serie B Rp 134 billion with tenure of 2 years, serie C Rp 1.594 trillion wih ten­ure of 3 years serie D worth Rp 1,469 trillion worth 5 years.

Previously BEI by end of May 2014 till May 2014 posted total 14 bond emission of emissions of public companies. The amount posted was Rp 10.47 trillion. This amount increased in line with posting of continued bond I Mandiri Tunas Finance phase II /2014 released by Mandiri Tunas Finance at BEI.

This bond was listed with nominal value of Rp 500 billion consisting of serie A Rp 425 billion with target interest of 10.70% with date of payment May 23, 2017, serie B Rp175 billion with inter­est level 10.85% with payment of bond in May 23, 2018.

The bond had rating of idAA [double A] from PT Perfindo. Acrting as authorized representative in that bond emission was PT Bank Mega Tbk [MEGA]

Total bond and Sukuk emission listed at BEI was 251 emission with nominal outstanding of Rp 216.52 trillion and USD 100 million released by 106 emittents. SBN Promisssory Notes listed at BEI to­talled 94% totalling 94 series with nominal value of Rp1,094.01 trillion, whislt EBA was posted at Rp2.14 trillion.

Previously there was release of Continuous Bonds I Mandala Multifinance phase II year 2014 released by PT Mandala Multifinance Tbk. [MFIN]. The bond with emission value came to Rp211 billion consisted of 2 series, i.e. serie A worth Rp147 billion wih tenure of 370 days and serie B of 64 billion with tenure of 3 years.

The Subordination Bond I Bank UOB Indo­nesia year 2014 was listed at BEI at the value of Rp1 trillion by Bank UOB Indonesia. The bond was based on 7 years tenure. By this notification, total bond emission or even Sukuk listed at BEI was 253 emission of 107 emittents, with nominal outstanding of Rp216.322 trillion and USD 100 million. SBN State Promissory Notes was posted to reach 93 se­ries amounting to Rp 1,111,01 trillion and USD 540 million and 5 Asset-based Security [EBA] worth Rp 2.14 trillion.

The same was with Continuous Bondi! Adira Finance wirh fix interest level phase III 2014 by PT Adira Dinamika Muilti Finance Tbk [ADMF] worth Rp 1.5 trillion. The bond consisted of 3 series, i.e. seri A worth 687 billion with 370 day tenure, serie B Rp363 billion with 36 month tenure and serie C reaching Rp450 billion with tenure of 60 months.

By this notation, total emission of bonds or Sukuk listed at BEI was 251 emission of 106 emiitents nominal outstanding value of Rp216.52 trillion and USD 100 million. Meanwhile SBN Promissory Notes was posted to reach 94 series worth Rp1,104 `trillion and USD 640 million and 5 asset-secured Se­curity [EBA] worth Rp2.14 trillion.

Lana Soelistianingsih of PT Samuel Asset Management esimated that corporate bonds would have high time at 0111-1V this year, but apparenly de­mand was high so SUN was over-subscribed which was rated as easing the market. Issuance of corpo­rate bonds was estimated to heighten as long as the Government remained to emit SUN.

"Corporate Bonds would persist as long as the Government emit bonds, but if the Government slowed down in Semster II probably the private sec­tor descend as well," Lana said that the positive momentum would be safeguarded if companies were able to offer attractive refund with higher coupon rate than SUN and benchmark rate which was nort in­creased.

According to Lana, emiitents must dare to en­ter market by giving normal return around 200-250 basic points where SUN was of the same tenure. Ac­cording to Lana, release of bonds by May 2014 was still led by emittent of the Financial sector, amounting to Rp5.97 trillion.

Furthermore followed by telecommuniction companies Rp1.00 trillion, retail emittent Rp650 bil­lion, property emittent Rp575 billion, food & bever­ages emittent Rp250 billion while issuance of medium term notes IMTN I was also led by financial company at the value of Rp550 billion.

According to analyst of BNI Securities I Made Saputra, the quiet bond outflow was due to high benchmark rate. Besides, emittents were still wait­ing for Presidential election outcome. The two pints made emittents tend to wait and see before obtaining cheap money from promissory notes.

"The mond market was still quiet compared to last year's emittence of the same period more­over with election suspense"

As known, the trend of corporate bond emit­tence was in line with the number of SUN State Bond absorption. At early year it seemed that the Govern­ment was doing front loading to anticipate stimu­lus axing by the Fed in Semester 11 which motivated some emittents to emit bonds.

This week, the Government again launched auction of SUN. In this auction, the Government of­fered 5 series of bonds, i.e. serie SPN12150305 [re­opening] by interst discount payment and due on March 5, 2015. Furthermore series SPN12150501 [reopening] by discounted interest payment to be due on May 1, 2015. (SS)

Business News - June 11, 2014

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