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)