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| Indonesia Economics Update, 27 Nov 2015 |
- Indosat Ooredoo’s “collaborations to enable education for all”
- Tower Bersama push for tower rental business
- Waskita Karya secured IDR27.9trn new contract
- Garuda ready for USD500mn expansion
- Pakuwon Jati received IDR2.73trn marketing sales
- Unilever opens IDR2trn Oleochemical Plant in North Sumatera
GOVERNMENT BONDS
Ex Benchmark SUN Auction Close Lastly 2015. The government offered FR0053 (5.6 years) and FR0056 (10.8 years) at auction on Tuesday (1/12) next week, or the last SUN auction in 2015. For the record, the two series respectively are ex benchmark 10-year and 15-year in 2011 ago. The Government tried to increase outstanding, and create good liquidity; as two of the series will serve as a new benchmark 5-year and 10-year period of 2016.
Since June 2015, the government re-actively offer FR0053 to investors, either through auction of government securities, debt switch, as well as private placement, push this outstanding series of Rp 20.6 trillion (May 2015) to Rp 55.5 trillion (October 2015) , By comparison, outstanding new 5-year benchmark is currently still under outstanding FR0069 (benchmark 5-year currently) are worth a total of Rp 60.7 trillion. The same is done by the government against the new benchmark 10-year FR0056.
Based on data IDX as of October 2015, outstanding FR0056 Rp 41.4 trillion, only 33% of the total outstanding FR0070 (benchmark 10-year currently) are valued at Rp 125 trillion. The low outstanding, potentially making the government continues to aggressively offer FR0053 and FR0056 are in the auction - auction SUN 2016. At the last auction of government securities in 2015, the government also offers FR0073 (15.5 years) or the new benchmark 15-year period of 2016.
ASF bonds and 45% ADMF Dominance Secondary Transactions.
Trading activity yesterday again looked deserted with the value of transactions decreased 33% to Rp 305 billion. Bonds Astra Sedaya Finance (ASF) and Adira Finance (ADMF) dominate transactions in the secondary market yesterday with a total volume of transactions reached Rp 138 billion (45% of total market volume) of the total 7 series traded. In addition, buying back make TAXI 12:25% yield in 2019 plummeted to the level of last week's 12:42% after touching 16.77%.
Meanwhile, the decline in yields seen in other most-traded bond is 8.75% AKRA 2019 fell 24bps to 10:51% level. For the record, AKRA 8.75% in 2019 (o / s Rp 877 billion) are actively traded bonds including during this November with a frequency of 35 times. While bonds series AKRA AKRA series B is 8.40% in 2017 (o / s USD 623 billion), based on data IDX, have never traded in the secondary market during the month of November.
Bima Finance Coupon Offer Up to 14.5%.
Milky Multi Finance offers a coupon of between 13% and 14.5% for the first phase continuous bonds worth Rp 150 billion, which will be released in the near future. Bonds that have earned the rank of Valuation BBB is offered in two series that Serie A with a tenor of 1 year is offered with a coupon of 13% -13.5%, while series B tenor of 3 years is offered with a coupon of 14% -14.5%.
The entire proceeds will be used for working capital. Bima Finance remain focused to deliver a portfolio of financing with 60% financing and 40% used car financing a used motorcycle. Although it bears the BBB rating, but the company believes the bonds will be absorbed by the insurance company that has partnered with the company.
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