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Jakarta Post

Indonesia issues samurai bonds

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, May 25, 2018   /   10:52 am
Indonesia issues samurai bonds Japanese yen banknotes (AFP/File)

The Indonesian government on Thursday announced it would issue Japanese yen-denominated samurai bonds worth 100 billion yen (US$912.18 million).

The government debt papers consists of four series  -- RlJPY0521, RlJPY0523, RlJPY0525, and RlJPY0528 – which are worth 49 billion yen, 39 billion yen, 3,5 billion yen and 8,5 billion yen respectively.

The coupon rates of the series are of 0.67 percent, 0.92 percent, 1.07 percent and 1.27 percent, while the maturity dates are May 31, 2021, May 31, 2023, May 30, 2025, and May 31, 2028.

The Finance Ministry's government debt paper director Loto Srinaita Ginting said Indonesia's regular issuance of samurai bonds had received positive responses from Japanese investors.

“This is indicated by the high demand for the instrument amid global market fluctuation, particularly for government debt papers from developing countries like Indonesia,” he said in Jakarta on Thursday as quoted by kontan.co.id.

He said his team had informed potential investors of the plan to issue samurai bonds during a non-deal roadshow to explain the achievements of the Indonesian economy such as the credit rating upgrades granted by a number of institutions.

The roadshow had managed to maintain Japanese investors’ confidence in the Indonesian economy, he added.  

The samurai bonds will be issued on May 31. The joint lead arrangers are Daiwa Securities Co. Ltd., Mizuho Securities Co. Ltd, Nomura Securities Co. Ltd and SMBC Nikko Securities Inc.

The four series have obtained Baa2 from Moody’s, BBB- from S&P, and BBB from Fitch. (bbn)