SMI Got Blessings From Infrastructure Financing
The financing SOE, PT Sarana Multi Infrastruktur (Persero) will pay off bonds debt reaching IDR 2.42 trillion due in the near future using various financing schemes (blended financing) by taking into account the prevailing interest rates. Based on Pefindo data, Monday (22/8/2022), SMI has bonds and Sukuk maturing worth IDR 1.71 trillion in August 2022, and bonds maturing IDR 727.5 billion in October 2022.
Director of Operations and Finance of Sarana Multi Infrastruktur, Darwin Trisna Djajawinata, explained that the repayment of bonds maturing this year has become part of managing SMI's assets and liabilities. According to him, along with the improvement in the company's financial condition from business activities and the support/trust from partners including financial institutions and investors, we have the flexibility to pay off maturing obligations.
"Both from internal cash funds, banking facilities, or the proceeds from the issuance of new debt securities with a better coupon rate for the company, so that the repayment will be blended financing," he explained to Bisnis, Monday (22/8/2022). Furthermore, this BUMN under the Ministry of Finance also has a plan to issue new debt or bonds in the near future or in the next 3 months. SMI is currently preparing for the publication pending the appropriate publishing window.
"Yesterday, we also activated a funding facility from the bond market through a Shelf-Registered Public Offering III with a facility of IDR 20 trillion for bonds and a Shelf-Registered Public Offering II with a IDR 5 trillion facility for sukuk," he said. Issuance of corporate bonds in the rest of this year is estimated to still be busy despite global sentiment still shrouding. In terms of realization, the issuance of corporate bonds until the first week of August reached IDR 107.4 trillion from 87 issuers, exceeding the full year realization in 2021.
In 2021, the realization of corporate bond issuance reached IDR 104.36 trillion from 96 issuers. The supply of corporate bonds is expected to increase this month and next in line with the value of maturing instruments. Based on data from Pefindo, in August 2022, the realization of the issuance of corporate bonds was IDR 12.43 trillion. Then, in September 2022 it reached IDR 7.31 trillion and October 2022 with iDR 10.36 trillion.
Meanwhile, in terms of the debt securities market, there is a weakening as reflected in the yield on the 10-year benchmark SUN. The yield on the benchmark government bonds rose to 7.2 percent from the previous sloping down to 7 percent due to the inflow of foreign investor funds. Nevertheless, corporate bonds still have the opportunity to gain market interest in the midst of the turmoil in government bonds because they offer more attractive yields with measurable risks.
This opens up opportunities for new issuance of corporate bonds originating from maturing instruments. As an illustration, from August to October 2022 there are bonds maturing worth IDR 29 trillion.