Pefindo hopes to rate Rp 16t in bond issues

Pefindo hopes to rate Rp 16t in bond issues

JAKARTA (JP): The country's only rating agency PT Pemeringkat
Efek Indonesia (Pefindo) expects the value of bonds it will rate
this year could reach up to Rp 16 trillion (US$6.66 billion).

Pefindo president Farid Harjanto said he was optimistic about
reaching the target because from January to June this year, it
had already rated bond issues worth Rp 10 trillion.

He said the central bank's move to ban new loans for land
acquisition and development, except for cheap housing, would be a
boon to his firm's business.

"Property companies will seek funds from bond issues and this
means we will have more rating orders," he said early last week.

Farid said that with the central bank's move the value of
rating orders could reach Rp 20 trillion.

Bonds would account for 70 percent of the debt instruments to
be rated by Pefindo this year, he said.

The remaining 30 percent will be commercial paper issues.

"Last year, bonds accounted for about 30 percent of the total
rating orders," he said.

Of the 65 bond issues rated by May, 23 bond issues, worth Rp
4.2 trillion, were issued for the property sector, 26 bonds
issues, worth Rp 3.86 trillion were for financial and banking
companies, six bond issues, worth Rp 2.6 trillion, were for
infrastructure development.

Last year, Pefindo rated 17 bond issues worth Rp 3.7 trillion
and 59 commercial paper issues worth Rp 3.9 trillion. (aly)