Tuesday, 29/06/2010 00:00 WIB
Corporate bond issuance mushrooming this year: Bond coupon pontetially drops
Irvin Avriano A.
JAKARTA: Corporate bond issuance is to go beyond the prediction this year following the crashing yield of the government bond following the soaring Indonesia debt rating prospect.
Based on Bisnis data, corporate bond issuance this year has reached IDR36.54 trillion or rose 25.04 percent as from IDR29.22 trillion realization last year.
Corporate bond issuance in semester I/2010 consisted of 15 bond series both conventional and sukuk worth IDR12.09 trillion.
The amount is potentially to grow up plus the IDR11.6 trillion bond issuance which is process of Bapepam-LK and IDX.
Besides, some companies mostly finance sectors plan to issue IDR12.85 trillion bonds in semester II/2010.
The companies here include PT Bank Jabar Banten, PT Bank Rakyat Indonesia Tbk, and Perum Pegadaian which each plans to issue IDR2 trillion bonds.
The issuance value excluded the issuance of derivative bond in the form of asset securitization through the asset-backed securities (KIK EBA) scheme. The instrument issued last year stood at IDR445.11 billion.
EBA issuance scheme this year stands at IDR750 billion at maximum which will be issued by PT Bank Ta-bungan Negara Tbk.
Analyst of corporate bond market of PT Trimegah Securities Tbk Octavianus Bramantya said bond issuance this year is to increase following the drop of government bond (SUN) yield.
SUN usually serves as the standard for corporate bond coupon. The smaller the coupon, the lower coupon paid by the bond issuer company.
"The fund flow from stock market mostly come into SUN so it becomes one of the factors for the bond coupon drop which is marketed. But the fund generated from stock market is indirectly coming into corporate bond market," he said yesterday.
The fluctuating stock market condition has encouraged investors to rest their fund for government bond. Besides, the betterment of Indonesia debt rating prospect given by some international rating firms made SUN lucrative.
President Director of PT Pemeringkat Efek Indonesia (Pefindo) Ronald Andi Kasim predicted this year the ecorproate bond issuance has bigger potential than that of last year.
"With oversupplied liquidity market condition, the option for bond issuance is still lucrative up to end of the year," said Ronald.
Rating director of Pefindo Salyadi Saputra admitted the company revised the projection of bond issuance value this year.
"But, the problem is that the larger size has been issued in semester I/2010. The remaining middle size is to be issued in semester II/2010. But bigger size potential still remains," he said.
Pefindo projected the corporate bond issuance this year is about IDR20 trillion. But considering the progress, Salyadi is optimistic corporate bond issuance could reach DIR25 trillion.
"The projection of semester II/2010 might be about IDR10 trillion. Six emitters are rated at IDR4 trillion by Pefindo. Until mid June 2010, the bonds stood at IDR16 trillion," he added.
Director of PT Sarana Mul-ti-giriya Finansial (SMF) Sutomo added the capital from stock market switched to the corporate bonds which have less risk, such as those issued by the state firm.
"They are likely to enter to SUN or state firms bonds due to the less risk."
This is reflected from the investors interest to bond III/2010 offering. The bond offer gets more than IDR1 trillion bond demand from earlier target of IDR800 billion.
The exceeding demand has made the company to set bond coupon at the level of 9.25 percent for tranch A and 9.75 percent for tranche B. (Bisnis/iaa/10/pul)