Bond Market In 2021 More Excited Than Last Year

Illustration. (Photo: Doc. Antara)

JAKARTA - The market for corporate bonds or bonds this year looks more vibrant than in 2020. Data on bond issuance until the middle of this year shows this.

Bond issuance during the first semester of 2021 was recorded at IDR 43.37 trillion, or up 44.4 percent compared to the same period in 2020 which was recorded at only IDR 30.03 trillion.

President Director of the Indonesian Securities Rating Agency (Pefindo), Salyadi Saputra said the issuance of bonds in the first semester of 2021 was driven by market players' confidence in the improving economy and the COVID-19 vaccine program.

"In terms of bond issuers in the first semester of 2021, there will be 28 issuers. Meanwhile, in the same period in 2020, there will be 27 issuers," Salyadi said in his virtual presentation to reporters, Thursday, July 8.

Even so, he continued, in the second semester of 2021 the issuance of bonds will be overshadowed by the policies of the United States Central Bank or the Fed regarding tapering and Emergency PPKM in handling spikes in cases of COVID-19 infection.

"This factor will be considered by prospective bond issuers," he said.

As for Pefindo, as of June 30, 2021, it still holds the mandate to rank unissued debt securities worth Rp75.58 trillion from 45 companies.

Meanwhile, until the end of the year, the total issuance of bonds is still under review by Pefindo.

"We will convey the change in the target for the bond issuance in the near future," he said.

Previously, Pefindo estimated that bond issuance throughout 2021 would reach Rp122 trillion to Rp159 trillion. This is based on the value of bonds with maturities of Rp125.4 trillion.