Issuance Of National Corporate Debt Issuance Reaches IDR 26.4 Trillion, The Largest From Bonds And Sukuk

JAKARTA - In the first quarter of 2023, PT Pemeringkat Efek Indonesia (Pefindo) recorded that the issuance of corporate debt securities nationally reached IDR 26.4 trillion.

From this value, the details are the issuance of corporate bonds and sukuk worth IDR 25.1 trillion, the issuance of medium notes (MTN) worth IDR 700 billion, as well as the issuance of other debt securities (perpetual and SBK) worth IDR 545.2 billion.

"Meanwhile, for the Securitization until March 2024 there has been no publication," said Head of the Economic Research Division of Pefindo Suaputo quoting Antara.

In terms of sectors, Suaputo explained that the special financial institution sector dominated with issuance of IDR 4.7 trillion, followed by the parent company with the issuance of IDR 3.6 trillion and the pulp and paper sector with the issuance of IDR 3.4 trillion.

Then, the mining sector with the issuance of IDR 3.0 trillion, followed by the telecommunications sector with the issuance of IDR 3.0 trillion and the non-multiple finance sector with the issuance of IDR 2.8 trillion.

Suaputo explained that Pefindo had increased 82.4 percent of all national debt securities worth IDR 26.4 trillion issued during the January-March 2024 period.

"The purpose of using funds is mostly for working capital of 56.5 percent and refinancing 31.2 percent," said Suadarato.

On this occasion, he said that the prospect of issuing corporate debt securities would tend to be positive this year, driven by various factors from internal or external.

Meanwhile, these various driving factors include maintained real sector activities, waiting and see conditions that tend to decline, and adapting corporate strategies in dealing with higher interest rates for the longer.

In addition, he continued, the need for refinancing in 2024 is higher than in 2023, financing facilities from banks tend to have a short tenor, as well as the prospect of lowering the benchmark interest rate in the second semester of 2024.