Pefindo Predicts Bonds In 2022 To Reach IDR 151 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - Pefindo predicts bond issuance this year will increase again to Rp151 trillion. The realization of bonds in 2021 is Rp113.06 trillion.

Head of Pefindo's Corporate Rating Division, Niken Indriarsih, said that his party estimates the number of debt securities issuance this year to be in the range of IDR 102.4 trillion for conservative assumptions and IDR 151.2 trillion with optimistic projections.

According to him, the increase in bond issuance in 2022 will be supported by the need for corporate refinancing. This is in line with the number of corporate bonds maturing in 2022 which reached Rp157 trillion.

In addition, market expectations regarding the continuation of the economic recovery from the coronavirus pandemic will also increase corporate interest in issuing debt securities.

However, according to him, not all companies will choose bonds as a source of refinancing. This is in line with the potential for an increase in the Fed's interest rates which could increase the risk and cost of funds.

"To anticipate this sentiment, the company may refinance from a loan from a bank or its internal cash," he explained in Pefindo's online discussion with the media, Thursday, February 10.

Niken said that the total issuance of national corporate debt was IDR 113.06 trillion in 2021, an increase from the 2020 realization.

"This amount has increased compared to emissions throughout 2020 which amounted to Rp. 96.6 trillion," he said.

In detail, the total issuance of corporate bonds in 2021 with a Pefindo rating is IDR 84.41 trillion. Meanwhile, the remaining Rp28.65 trillion with other rating agencies.