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Pefindo to rate Rp 21t worth of corporate bonds in 2017
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Pefindo president director Salyadi Saputra has predicted that the country’s corporate bond market will improve next year, on the back of low inflation and interest rates, as well as the likely success of the government’s ongoing tax amnesty. (JP/Donny Fernando)
C
redit rating agency Pemeringkat Efek Indonesia (Pefindo) said Tuesday it had received requests from 28 companies to rate their bonds scheduled to be issued next year, worth a total of Rp 21.3 trillion (US$1.59 billion).
Pefindo president director Salyadi Saputra said most of the bonds issuers were companies operating in the financial sector, with the planned bonds worth a total of Rp 6.97 trillion.
"The issuers are mostly investment-grade companies," Salyadi said in a press conference on Tuesday.
(Read also: Bond issuers, investors ditch long-term options amid volatile market)
He added that if companies receive a non-investment grade for their bonds, they would likely prefer to halt the bond issuance, as the coupon rate for such bonds would stand higher than 10 percent.
"So they better to go to the bank and ask for a loan rather than issuing bonds," he said.
Salyadi predicted that the country’s corporate bond market would improve next year, on the back of low inflation and interest rates, as well as the likely success of the government’s ongoing tax amnesty.
Pefindo, he said, estimated that Rp 119.6 trillion worth of new bonds would be issued next year, up by almost 15 percent from this year’s Rp 104.2 trillion. (hwa)
