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Govt issues $3b debt papers for state budget pre-funding
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State-owned Enterprises Minister Rini Soemarno (center), PT Jasa Marga executives and officials of the London Stock Exchange pose after Jasa Marga listed its Komodo bonds on the bourse on Dec. 13, 2017. (Courtesy of/State-owned Enterprises Ministry)
T
he Finance Ministry has issued government debt papers (SUN) in United States dollar denomination worth US$3 billion for the 2019 state budget.
The SUN will be registered with the Singapore Stock Exchange and Frankfurt Stock Exchange.
The Finance Ministry's Financing and Risk Management Directorate General said the SEC-registered SUN format are in three tenors -- $750 million in 5 years, $1.25 billion in 10 years and $1 billion in 30 years.
“With the good market conditions after the G20 summit, the government wants to access the US dollar market quickly for finance in 2019,” according to a press statement issued by the directorate general on Tuesday as quoted by kontan.co.id.
The coupon rate for RI0224 series with five-year tenor at $750 million was at 4.45 and 4.48 percent yield; the rate for RI0229 series with 10-year tenor at 1.25 billion was at 4.75 and 4.78 percent yield; while the rate for RI0249 series with 30-year tenor at $1 billion was at 5.35 and 5.38 percent yield.
Acting as joint book runners in the issuance of the debt papers are ANZ, Citigroup, DBS Bank Ltd., Deutsche Bank and Goldman Sachs (Singapore), while PT Bahana Sekuritas, PT Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia act as comanagers.
It was the second issuance of the SUN in US dollars with an SEC-registered shelf format. In 2017, the government issued $4 billion in debt papers.
The SUN issuance was given a Baa2 rating from Moody’s, BBB- from Standard & Poor and BBB from Fitch. (bbn)
