What Are Bonds That Waskita Karya Failed To Pay To Investors?

Illustration (Photo: Doc. Antara)

YOGYAKARTA The red-plated construction issuer, PT Waskita Karya Tbk. announced the postponement of the payment of Shelf-Registered Bonds III Phase IV in 2019 series B 15, 16, and 17 which matured on Wednesday, August 16, 2023. This delay prevented the company from depositing funds to the Indonesian Central Securities Depository (KSEI). So, what is bond interest?

Bond interest is a return that investors will receive after investing in bond instruments.

The bonds themselves are defined as medium-long-term transferable debt securities, which contain promises from the party issuing to pay interest payments for a certain period and pay off the principal of the debt at a time that has been determined to the buyer of the bonds.

In bonds, the payment given by the debtor is in the form of a coupon that refers to interest rates with a certain percentage. The government or company will determine the amount of bond interest before issuing it.

Usually, coupons for debt securities are generally higher than saving in regular bank accounts or deposits. This is a special attraction for the community. Moreover, the purchase of debt securities can be done with minimal capital.

Types Of Bond Interest Rates

There are several types of bond interest rates, including:

Fixed coupled bonds or flowering bonds are debt securities with the amount of fixed coupons. From the time of bidding until the maturity period, interest or bond coupons have not changed.

Thus, even if Bank Indonesia's interest rates are cut, the returns that will be received by investors will be in accordance with the minimum limits announced at the time of issuance. On the other hand, if interest rates increase the returns you receive, they will also increase.

In essence, the interest on bonds that you receive by investors can go up, but cannot go down. Usually, the publisher at the beginning of the issuance of debt securities will announce its floor coupons.

Floating coupled bonds or bonds with floating interest rates are debt securities that offer changing amounts of coupons, following the benchmark interest rate. Generally, coupon interest is greater than deposit interest rates.

Zero coupled bonds or non-excitation bonds are bonds that do not provide coupons regularly as proof of the investment holder's profits.

Instead, the profit from debt securities will be obtained by investors through the difference in selling prices at the purchase price that is valid from the offering period. The difference in selling prices and purchase prices is better known to the public by the term capital gain.

Coupon bonds are the type of bond interest paid by bond issuers regularly in a certain period (a month, every 3 months, and so on). The amount of coupons for the publisher will be announced before the issuance of debt securities.

For additional information, the movement of bond prices is greatly influenced by the movement of interest rates. The movement of bond prices is inversely proportional to the interest rate. This means that if interest rates rise, the price of bonds will decrease. On the other hand, if interest rates drop, the price of bonds will increase.

That's the information about what bond interest is. Hopefully this article can add insight to the loyal readers of VOI.ID.