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Mandiri aims to securitize rupiah denominated global bond

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta | Wed, September 27, 2017 | 03:25 pm
Mandiri aims to securitize rupiah denominated global bond A teller at state-owned lender Bank Mandiri serves a customer at a branch in Central Jakarta. (JP/Dhoni Setiawan)

State-owned lender PT Bank Mandiri (Persero) and its securities firm subsidiary PT Mandiri Sekuritas aims to securitize the first ever rupiah denominated global bond.

Bank Mandiri president director Kartika "Tiko" Wirjoatmodjo said on Wednesday that the rupiah denominated global bond was a new product.

He said many Indonesian companies had issued global bonds, however they were denominated in US dollars.

He added the companies that issue the bonds would pay for the coupons in rupiah, and global investors would convert the payment into US dollars according to the market exchange rate at the date of payment.

Read also: Bank Mandiri eyes growth in consumer

"This is the right time to issue the rupiah denominated global bond because Indonesia has received investment grade status from all global rating agencies, and the rupiah has been stable in the last two years," Tiko said during a global IDR financing workshop in Jakarta.

The State-Owned Enterprises (SOEs) Ministry deputy for company restructuring and development Aloysius Kiik Ro said the product was suitable for infrastructure related SOEs because infrastructure projects generated income in rupiah and were long term investments.

"We see potential in four SOEs to issue rupiah denominated global bonds. You can guess their names but I will not mention them," Aloysius said. (bbn)

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