Debt Issuance: Financing Companies Welcome Signals of Recovery
Issuance of debt securities by financial institutions in the non-bank financial industry sector has the potential to increase.
The company will be busy releasing debt securities in the second quarter of 2021 and the third quarter of 2021. Pefindo's Financial Services Rating Division (Fi Ratings) analyst Danan Dito said that the financing sector in general will move in a positive direction in line with the opportunities for post-pandemic economic recovery. "5 months running, the trend of issuing debt securities in the financing and multi-finance industry is already visible and is indeed higher than 2020. These are signs of recovery," Dito explained that in January-May 2020 the financing industry only issued Rp. 1.19 trillion, now as of January-May 2021 has reached IDR 6.92 trillion. Likewise with multi-finance, in the period January-May 2020 issuing IDR4.04 trillion, now as of January-May 2021 it has reached IDR6.59 trillion. For your information, the financing industry includes state-owned companies in the field of microfinance, unsecured, pawnshops, or investment financing. Meanwhile, multi-finance companies are dominated by non-state-owned companies engaged in consumer financing and automotive financing. Dito revealed that the high number of debt securities issuance from the financing sector was driven by the refinancing of maturing debt securities, as well as the trend of cost of funds to issue cheaper bonds considering interest rates were still low.
|•SOURCE•| Image :INDIA FILINGS |
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