Undeterred by financial market turbulence, four Indonesian financial companies are seeking funds from bonds sale in the fourth quarter (Q4) 2015 for a combined amount of Rp8.5 trillion ($607.14 million).
State owned export-import financing agency Indonesia Eximbank and publicly listed financing firm PT Adira Dinamika Finance Tbk (ADMF), are set to raise up to Rp2.5 trillion each from the bonds sale. PT Bank JTrust Indonesia Tbk (BCIC), formerly Bank Mutiara, intends to issue bonds worth Rp2 trillion while consumer financing firm Federal International Finance Group (FIF) will be raising Rp1.5 trillion.
In the eight months to August, the total value of bonds issued by 30 companies have reached Rp45.36 trillion, the Financial Services Authority, locally known as Otoritas Jasa Keuangan (OJK) revealed.
The Indonesia Eximbank said, in its prospectus, that the bank was offering one-year notes with a coupon rate of 8.4 per cent per annum while the three-year bonds and five-year bonds carried an annual coupon rate of 9.2 per cent and 9.5 per cent respectively. Earlier in February, Eximbank raised Rp4.6 trillion from selling bonds.
Eximbank will offer the bonds on September 10 and 11, and they will be listed on the Indonesia Stock Exchange (IDX) on September. 17. The company has appointed PT CIMB Securities Indonesia, PT HSBC Securities Indonesia, PT Indo Premier Securities and Standard Chartered Securities Indonesia as joint lead underwriters for the bond sales.
Adira Finance, a financing company owned by PT Bank Danamon Tbk (BDMN), will issue two series bonds, namely conventional and sharia bonds. Adira will use the funds to finance its financing programmes in 2015 and 2016.
Bank JTrust has set a plan to issue a negotiable certificate deposit (NCD) and medium term notes (MTN) worth Rp2 trillion. The notes will be absorbed directly by its holding company Japan J Trust Group.
FIF, the motorcycle financing’s unit of diversified conglomerate PT Astra International Tbk (ASII), expects to raises up to Rp1.5 trillion from the issuance of serial bonds. FIF has raised Rp3 trillion during the first issuance in March.
In a prospectus, FIF said the Series A tranche bonds will be offered with coupon rate of 8.5 per cent per annum and will have a maturity of one year, while Series B will be offered with a coupon rate of 9.25 per cent per annum and will mature in three years.
OJK’s Chairman Muliaman Hadad said the agency will push more companies to raise funds from IDX to make Indonesia’s capital market more attractive for investors. The government is expected to issue economic stimulus packages in the coming weeks to boost the investment climate.