The issuance of corporate bonds and sukuk increased to Rp93.4 trillion in Q3-2024.
According to data from PT Pemeringkat Efek Indonesia (Pefindo), the issuance of corporate bonds or debentures increased by 4.6% year on year (yoy). It is noted that the issuance of corporate bonds in the same period last year was recorded at Rp89.3 trillion.
Director and Chief Investment Officer Fixed Income PT Manulife Aset Manajemen Indonesia (MAMI) Ezra Nazula said that the sentiment of increase from refinancing and expansion in several sectors has been a driving factor from the supply side.
“Because of the upward sentiment from refinancing and expansion in various sectors, especially the commodity sector,” explained Ezra.
He added that the factor of a low base of issuance compared to last year was also a reason. As a result, demand increased as investors wanted to lock in high yields before the interest rate cut cycle occurred.
“In 2025, we still expect issuance to rise along with the continued decline in interest rates and relatively high commodity prices, plus the new government’s focus on the energy, food, and downstream sectors,” he said.
On the other hand, Director of Batavia Prosperindo Asset Management Eri Kusnadi said that this increase in issuance occurred due to the need for refinancing, particularly in the multifinance sector. However, he does not rule out the possibility of expansion sentiment also driving this value.
“The need for refinancing is higher in the second semester of 2024, indicated by the value of maturing bonds reaching Rp85.01 trillion, while in the first semester of 2024: Rp65.46 trillion,” Eri stated.
He also projected that the growth of corporate bonds in 2025 would be closer to the lower range. This considers the issuance data for Q3-2024, which amounts to Rp 93 trillion, while the total bonds maturing in Q4-2024 reach Rp 42 trillion.
PT KAI Issues Debt Securities Worth Rp 2 Trillion to Fund This Project
PT KAI (Persero) has issued Bonds and Sukuk amounting to Rp 2 trillion with competitive interest rates through the mechanism of the Public Offering of Sustainable Bonds (PUB) II Stage I KAI Year 2024 for Bonds with a principal amount of Rp 1.5 trillion and Sukuk Ijarah with a principal amount of Rp 500 billion. This PUB II Stage I KAI experienced an oversubscription of 1.78 times. This step is one of the strategies to strengthen the company’s funding structure and support strategic projects in the development of railway infrastructure in Indonesia. “The issuance of these Bonds and Sukuk is optimized to refinance maturing Bonds and also to fund the development project of coal transportation in Southern Sumatra,” stated KAI’s Vice President of Public Relations, Anne Purba, in an official statement on Wednesday (20/11).
Anne added that each of these debt securities is divided into 3 series. Series A coupon with a 3-year tenor and a yield of 6.70%, Series B with a 5-year tenor and a yield of 7%, and Series C with a 7-year tenor and a yield of 7.10%.
The underwriters involved in the issuance of Bonds and Sukuk include various trusted institutions such as Mandiri Sekuritas, CIMB Niaga Sekuritas, BRI Danareksa Sekuritas, and Bahana Sekuritas.
KAI diversifies its funding through both bank and non-bank financial institutions. The Bond and Sukuk funds will be used by KAI as effectively as possible to enhance railway transportation, especially coal transportation in Southern Sumatra as a national energy supplier.
“KAI appreciates the interest of investors who indirectly support sustainable growth so that trains can become the backbone of reliable mass transportation for both goods and passengers for all Indonesian people,” he concluded.
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