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Indonesia issues samurai bonds worth 177 billion yen

The government has issued a series of six samurai bonds to finance debt. 

News Desk (The Jakarta Post)
Jakarta
Thu, May 16, 2019

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Indonesia issues samurai bonds worth 177 billion yen A stock image depicts 10,000 yen banknotes. (AFP/File)

The Finance Ministry on Thursday issued samurai bonds worth 177 billion Japanese yen (US$1.62 billion) to finance debt repayment.

The Finance Ministry's debt paper directorate, which falls under the financing and risk management directorate general, announced that the government debt papers consisted of six series: RIJPY0522, RIJPY0524, RIJPY0526, RIJPY0529, RIJPY0534 and RIJPY0539.

“This is recorded as the largest transaction in samurai bonds [issued] by an Asian country through a public offering,” the debt paper directorate said in a statement.

The debt issue’s 15- and 20-year tenors were also the longest tenors for samurai bonds in Asia, the directorate stated, adding that it had also extended the average maturity of the bonds and expanded the types of investors eligible to take part in the bond issuance.

The financing directorate general also reported that Japanese investors responded with strong confidence in the debt instrument, as the Indonesian government regularly issued samurai bonds and because of its improved governance.

“The achievement was recognized by the Japan Credit Rating Agency [JCR], which [improved] its outlook from stable to positive,” added the directorate general.

Prior to the samurai bond issuance, the Finance Ministry had conducted a non-deal financial roadshow to meet with potential investors in Japan and other countries to explain the economic condition in Indonesia.

The investor base includes general banks (11.3 percent), specialized banks (14.1 percent), life insurers (18.1 percent), property insurers (0.1 percent), asset managers (15.3 percent), Shinkin banks and regional Japanese banks (9.4 percent), and others (31.7 percent).

The joint lead arrangers of the bond issuance are Daiwa Securities, Mizuho Securities,, Nomura Securities and SMBC Nikko Securities. (bbn)

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