“We are very proud that we have achieved almost a 2.5 times oversubscription for our Komodo Bonds from diverse investor profiles,” WIKA president director Bintang Perbowo said in a statement released to The Jakarta Post on Thursday.

He said that 67 percent of interested investors came from Asia, 13 percent from Europe and the Middle East, 10 percent from the United States and 10 percent from Indonesia. 

“[These] facts show strong investors' trust in WIKA and Indonesia, as well as good liquidity prospects for the investors," he added.

WIKA announced on Wednesday that it would be offering Rp 5.4 trillion (US$405.46 million) in Komodo bonds, which are senior unsecured fixed-rate notes with a final maturity of three years.

The notes are rated Ba2 by Moody’s and BB by Fitch, both with stable outlook, and were issued at par with a coupon rate of 7.7 percent following an initial price guidance set at 8 percent.

The notes, which will settle on Jan. 31, will be listed on the London Stock Exchange (LSE) and the Singapore Exchange (SGX-ST).

“This is a testament to both the credit strength of WIKA and the positive investor sentiment toward Indonesia’s infrastructure story,” said Bintang, adding that the Komodo bond issuance was an alternative way to source financing for the country's infrastructure projects. (bbn)

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