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Monday, May 17, 2010

IDR14 trillion bonds flocked the market

Monday, 17/05/2010 00:00 WIB

Irvin Avriano A.

IDR14 trillion bonds ready flooded the market

JAKARTA: Some IDR14.25 trillion senior bonds and corporate subdebt ready to flood the market by semester I/2010 which will boosted bond issuance into DIR22.87 trillion since early the year.

Data of Bapepam-LK shows the registration document of IPO bond has been on process and would be issued by 10 emitters promptly by semester I/2010.

The 10 emitters planning to issue bonds promptly and now on the bookbuilding include PT Bank Tabungan Negara Tbk (BTN), PT Oto Multiartha, and PT Titan Petrokimia Nusantara.

"The quickest to exit from my bureau is the bond from BTN and Oto Multiartha," said Service Sector Company Finance Assessment Bureau of Bapepam-LK Noor Rachman to press last week.

Some subdebt issuances will become one of the instruments supporting the banking capital which needs corporate capital balance booster to adjust to the CAR rise regulation.

Separately, Real Sector Company Finance Assessment Bureau Chief of Bapepam-LK Anis Baridwan said the bond issuance in his bureau which is on process is Titan Petrokimia, the subsidiary firm of PT Titan Kimia Nusantara Tbk.

As to him, the many bond issuances are more of the finance sector emitter than the real sector.

Head of Fixed Income Division of PT Anugerah Securindo Indah Ramdhan Ario Maruto said the bond issuance this year will be higher than last year which most influence comes from the less coupon given by the emitter.

The corporate bond coupon is based on the yield of SUN with the similar tenure at the secondary market. Yield will decline when the price grows stronger such as that of early the year until European and Greek crisis last month.

"This year there will be more due to some newcomers. The main factor is the lower coupon and lower issuance cost noting that the SUN market is good early the year."

He worried if semester II or yearend the interest rate will have soaring trend which then influences the SUN yield.

Ramdhan is still optimistic the corporate bonds will be absorbed by the market and there is no tight competition for investors noting that market will not feel as if flocked by investment instrument.

This is owing to the currently high liquidity fund as proven by the bond mounting bond exchange at the secondary market if compared to that of in 2009. (Bisnis/iaa)

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