Retail bond sales rescheduled to Aug. 2

The Jakarta Post ,  Jakarta   |  Sat, 07/01/2006 4:31 PM  |  Business

Urip Hudiono, The Jakarta Post, Jakarta

The government has postponed its plan to offer Indonesian retail bonds for the first time ever to individual investors until August, the Finance Ministry said, to give more time for the appointed sales agents to promote the bonds to potential investors.

However, it added it was still upbeat that the ""Indonesian Retail Bond 001"", or ""ORI001"", would be a market hit, and said it was eyeing an indicative target of Rp 2 trillion (US$215 million) in proceeds, and considering regular reofferings in the future.

The Finance Ministry's director for government bond management, Rahmat Waluyanto, said Friday that the initial offer of the three-year bonds would be delayed until Aug. 2, from the previously scheduled July 28, following requests from sales agents for more time to make preparations.

The Finance Ministry has appointed 11 sales agents -- 8 banks and 3 securities firms -- to sell the bonds to retail investors. The central bank previously appointed 13 sub-registry agencies to help administer trade in the bonds.

The quotas to be allocated to each sales agent have yet to be determined, however, pending the submitting by each of the details of expected investor demand, Rahmat said.

To buy the retail bonds, interested investors simply have to open accounts with a sales agent and with a sub-registry agency. The minimum amount of bonds -- denominated in multiples of Rp 1 million -- that an investor can purchase is Rp 5 million, but this is subject to the quotas set for each sales agent.

More information on the bond offer can be found at: http://www.dmo.or.id/publikasi/Brosur_ORI_new.pdf

Sales agents: Sub-registry agencies:

1. Bank Mandiri 1. Bank Mandiri

2. Bank Pan Indonesia 2. Bank Negara Indonesia

3. Valbury Asia Securities 3. Bank Rakyat Indonesia

4. Bank NISP 4. Bank Central Asia

5. Bank Bukopin 5. Bank Internasional Indonesia

6. Bank Permata 6. Bank Permata

7. Danareksa Sekuritas 7. Bank Niaga

8. Citibank 8. Citibank

9. Bank Mega 9. Deutsche Bank
10. Trimegah Securities 10. HSBC
11. Bank Danamon Indonesia 11. Bank Danamon Indonesia

12. Standard Chartered Bank

13. Kustodian Sentral Efek Indonesia

Source: Finance Ministry

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