Three firms to issue bonds soon: SSX

Three firms to issue bonds soon: SSX

Rendi A. Witular, Jakarta

The Surabaya Stock Exchange (SSX) said three new companies had
made plans to issue bonds, probably this month, to finance their
operations, an official said.

SSX president Hindarmojo Hinuri said the three companies were
Bank Bumiputera, PT Perusahaan Listrik Negara (PLN) and PT
Indorent, a subsidiary of automotive company PT Indomobil Sukses
Internasional.

"The three companies have applied with us for their bond
listing on the SSX. The bonds will be issued this year over
concern that interest rates will be higher next year, burdening
their financial accounts," said Hindarmojo during a ceremony on
the Jakarta Stock Exchange on Wednesday.

According to Hindarmojo, publicly listed Bank Bumiputera
planned to issue some Rp 500 billion (US$55 million) worth of
bonds, PLN about Rp 1.5 trillion and Indorent around Rp 300
billion.

SSX expects new bond listings by the corporate sector to
decline by 20 percent this year on political and security
concerns in the first semester of this year, arising from the
general and presidential elections, which have turned out to be
peaceful.

Hindarmojo said new corporate bond issues would only reach
around Rp 20 trillion this year, down from Rp 25 trillion last
year, as firms had decided to put off their issues until after
the election season was over.

Between January and September this year, bond issues by
companies have amounted to around Rp 13 trillion, with several
high profile companies expected to issue some Rp 7 trillion in
bonds by the end of this year.

Market capitalization of corporate bonds listed on the SSX
totaled Rp 56 trillion, with an average daily transaction volume
of Rp 65 billion.

Government bonds still dominate the market with total
capitalization of Rp 390 trillion and average daily transaction
volumes of Rp 2 trillion.