Non-bank financing experienced growth throughout 2014-2016. In 2014, the value of non-bank financing in Indonesia reached only Rp 110 trillion, but by October 2016 it had reached Rp 166.9 trillion, a growth of 51.7 percent in two years.
Equity offerings and new share issuances on the stock exchange dominated non-bank financing throughout 2016. Almost half of the financing, or Rp 83 trillion of corporate non-bank financing, originated from the stock exchange, followed by bonds at Rp 50 trillion, and debt securities (MTNs and NCDs) worth Rp 33.5 trillion.
The sluggish economy throughout 2015-2016 did not reduce corporate activity in seeking funding for business expansion outside the banking sector.
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