State-owned pawnshop PT Pegadaian is issuing Rp 3.26 trillion worth of bonds and sukuk (sharia-compliant bonds) to strengthen the company’s working capital structure.
The instruments will be offered from Sept. 16 to Sept. 17 in the third phase of the company’s shelf registration this year, the company announced on Wednesday.
“This issuance is in the form of bond shelf registration IV, phase III, year 2020, with a principal of Rp 2.42 trillion and shelf registration Sukuk Mudharabah I, phase III, year 2020, valued at Rp 835 billion,” Pegadaian president director Kuswiyoto said in the press release.
Kuswiyoto said the bond issuance was part of the company’s IV shelf registration with a total value of Rp 7.8 trillion. The sukuk were part of the Sukuk Mudharabah I shelf registration with a total value of Rp 2.2 trillion.
The bonds are being issued in two series. Series A has a principal of Rp 1.30 trillion with a fixed interest rate of 5.5 percent yearly and a maturity of 370 days. Series B has a principal of Rp 1.13 trillion with a fixed interest rate of 6.45 percent yearly and a maturity of three years.
The sukuk will also be issued in two series. The instruments in Series A have a total principal of Rp 704 billion, a profit-sharing payment of 5.5 percent per year and a maturity of 370 days. Series B has a principal of Rp 131 billion, a profit-sharing payment of 6.45 percent yearly and a maturity of three years.
“In the first and second phase, Pegadaian has issued bonds valued at Rp 1.9 trillion and sukuk valued at Rp 600 billion. With that, throughout 2020, the company has issued bonds and sukuk worth Rp 5.755 trillion,” Kuswiyoto said.
Pegadaian appointed five underwriters for its bond and sukuk issuance, namely Bahana Sekuritas, BNI Sekuritas, Danareksa Sekuritas, Mandiri Sekuritas and Indo premier Sekuritas. Bank Mega is acting as the bond trustee.
Indonesian rating agency Pemeringkat Efek Indonesia (Pefindo) has given its highest rating of idAAA to Pegadaian’s shelf registration bond IV/2020 and its highest sukuk rating of idAAA(sy) to the company’s Sukuk Mudharabah I/2020.
Both ratings indicate that the agency believes the company has a superior capacity to meet its long-term financial commitment, relative to that of other Indonesian debt issuers, according to Pefindo’s statement in May.
In a press release published on Aug. 3, Pefindo noted that it had maintained Pegadaian’s corporate rating of idAAA and noted that the company had a “stable” outlook.
“The corporate rating reflects Pegadaian’s status as an important government-related entity, its superior position in the pawn service business, very strong capitalization and a favorable liquidity and financial flexibility position,” Pefindo analysts Danan Dito and Handhayu Kusumowinahyu wrote in the release.
“However, the rating is constrained by the increasing pressure on its asset quality,” the analysts added.
The company’s total assets stood at Rp 68.44 trillion as of June 30, up 4.78 percent from the December 2019 figure. The company’s asset growth during the first half of the year was lower than its 6.25 percent asset growth – to Rp 56.09 trillion – during the same period last year.