SSX to trade new bonds

SURABAYA (JP): The Surabaya Stock Exchange (SSX) said on Monday it has signed a preliminary agreement with six local companies for the listing of their Rp 6 trillion (about US$790 million) worth of bonds at the exchange.

SSX president Anton Natakoesoemah said here that the bonds of the state-owned pawnshop service company Perum Pegadaian would be listed with a total value of Rp 135 billion, Bank NISP Rp 500 billion, and PT Indah Kiat Pulp & Paper Rp 2 trillion.

He said other bonds worth about Rp 3.4 trillion would be floated by three other local companies but he refused to disclose their names.

The potential growth in the local bond market for the next few years is expected to be great, as companies who need additional funding to support operations would still have difficulty getting bank loans locally as well as abroad.

"Issuing bonds is now a good opportunity especially for the medium to small-scale companies and cooperatives," Anton said.

At least 34 companies list their bonds on the East Java capital's stock exchange, which will start its scripless bond trading in March next year to boost bond transactions. (nur/udi)