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Indonesia Eximbank issues US$500m on Euro Medium Term Note
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Indonesia Eximbank acting executive director Susiwijono Moegiarso (left) hands over a token of appreciation to Finance Minister Sri Mulyani Indrawati (center), as witnessed by Indonesia Eximbank managing director Rahardjo Adisusanto, during a 2017 investor gathering in Jakarta on Feb. 7.
(JP/Anton Hermansyah)
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tate-owned Indonesia Eximbank has issued a US$500 million unsecured Euro Medium Term Note (EMTN) with a seven-years tenure for debt refinancing and supporting long-term expansion of export financing.
Indonesia Eximbank director Raharjo Adisusanto said the EMTN has a 3.9 percent annual coupon rate, much lower than the initial 4.2 percent coupon as it was 10 times oversubscribed, receiving orders worth a total of $5 billion.
"The 3.9 percent annual coupon means it is 25 basis points above the government's global bond," Raharjo said in a statement on Saturday.
The bank acting president director Susiwijono Moegiarso said the EMTN was the second time the bank issued a global debt instrument. The first was five years ago.
(Read also: RI’s Eximbank increases trade-finance for six SOEs)
"The issuance is very satisfying. The overbooking proves that global investors are really interested in Indonesia Eximbank's instrument," he said.
Previously, global rating agency Moody's Investor Service assigned a Baa3 rating to the EMTN. Moody's also gave a positive outlook to the debt instrument.
"The rating is underpinned by the bank's strong relationship with the government, including its ownership structure, its clear policy role as an export credit agency and its establishment under Law No. 2/2009, which designates its quasi-sovereign status," Moody's Investors Service Financial Institutions Group vice president Simon Chen said.
Indonesia Eximbank's senior unsecured debt rating is aligned with that of the Indonesian government sovereign rating of Baa3, due to its quasi-sovereign status and policy role, Chen said, adding that therefore the rating would move in line with any changes in the sovereign rating. (bbn)
