Indonesian corporates are heading toward a sharp increase in capital market amortisations in 2018 and 2020, reflecting maturity of bonds issued in 2012-2013, Fitch Ratings says in a new report.
Indonesian corporates face USD1.4bn in capital market amortisations in 2016 and USD3.2bn in 2017, with high-yield issuers accounting for USD572.8m and USD2.3bn, respectively. These capital market amortisations will peak in 2018 and 2020 at USD3.3bn and USD3.7bn, respectively.
Fitch Ratings believes that M&A and capex-related issuance will be limited in 2016 in view of the upcoming maturities and the increased cost of US dollar issuance. Investor sentiment toward US dollar bonds issued by Indonesian corporates has also been affected by recent defaults. The 2016 maturities appear manageable, though the shallower domestic market will provide challenges for the refinancing.


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