The FINANCIAL — London Stock Exchange Group on January 29 welcomes Wijaya Karya, one of the largest listed state-owned infrastructure and EPC (engineering, procurement and construction) companies in Indonesia, to celebrate the successful issuance of its first Komodo bonds on London Stock Exchange’s International Securities Market (ISM).
Wijaya Karya’s three-year Komodo bonds raised IDR 5.4 trillion (USD 405 million equivalent), with a coupon of 7.7 per cent. The bonds attracted global investor support and were more than two and a half times oversubscribed. The proceeds will be used by Wijaya Karya to support the funding of significant investment and infrastructure projects across Indonesia, according to London Stock Exchange.
The landmark bond issuance from Wijaya Karya comes less than two months after the first-ever Komodo bond listed on London Stock Exchange, by state-owned Indonesian toll road operator, Jasa Marga. Wijaya Karya’s Komodo bonds are the largest to date. Together Wijaya Karya and Jasa Marga are paving the way for the opening of the global Komodo bond market to support Indonesian’s infrastructure development.
Nikhil Rathi, CEO, London Stock Exchange Plc welcomes Sri Mulyani Indrawati, Minister of Finance Republic of Indonesia, Rini M. Soemarno, Minister of State Owned Enterprises, Republic of Indonesia Bintang Perbowo, President Director, Wijaya Karya and The Rt Hon Mark Field, Minister of State for Asia and the Pacific at the Foreign and Commonwealth Office, to open London trading today.
Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia:
“The Indonesian Ministry of Finance have been striving to create a conducive ecosystem for infrastructure development. In order to create an inclusive growth, infrastructure development is a necessity.
“Strong macroeconomic fundamentals combined with credible and responsible budget that we strive for have received acknowledgement from worldwide community. Last year S&P and Fitch upgraded our rating. This is the first time that all 3 rating agencies assigned investment grade rating to Indonesia. This certainly helps to lower borrowing cost and gives investor the confidence to invest in Indonesia. Nevertheless we always encourage innovative and creative financing, and Komodo Bond is certainly one of them.
“Once again, we want to congratulate WIKA on the success of its Komodo Bond issuance which is the largest to date. Not only this is a testament to the good work of the company but also to the strong conviction in Indonesia’s growth story.”
Rini M. Soemarno, Ministry of State Owned Enterprises, Republic of Indonesia:
“State Owned Enterprises (SOEs) play a critical role in the infrastructure development of Indonesia. We are committed to accelerating all strategic projects that will create much-needed connectivity across the country. This is also in line with the government’s focus to ensure that growth increases and inequality declines.
“The large amount of funding that is required to realize Indonesia’s infrastructure plans means SOEs are expected to continue to innovate and push boundaries on financing solutions. Komodo bonds are increasingly becoming a reliable source that we can tap going forward.”
“The Ministry of SOE is proud with Wijaya Karya’s Komodo Bond issuance as the largest issuance of global IDR-denominated bonds to date. This indicates the depth of the Komodo bond market and the confidence in this product from investors globally.
”The Ministry will continue to support SOEs looking to tap the Komodo bond market as it is increasingly becoming a reliable source of funding to support Indonesia’s infrastructure development.
Bintang Perbowo, President Director, Wijaya Karya:
“Wijaya Karya is very proud to become one of the global-local currency debt market players. Wijaya Karya’s Komodo bond that was more than two times oversubscribed had shown strong global investor support and trust towards Wijaya Karya as well as the future of Indonesia’s infrastructure.”
“Komodo bond is the right instrument for us to match our construction period with our financing period which will bring better performance for Wijaya Karya. We wish to be a key player in the Komodo bond market and will prove to our investors that they are investing in the right company and the right partner; Wijaya Karya.”
The Rt Hon Mark Field, Minister of State for Asia and the Pacific at the Foreign and Commonwealth Office:
“The launch of this second Komodo Bond so soon after the first demonstrates the amazing appetite for Indonesia and the huge potential of this market. It represents an example of Britain’s global leadership in financial services, and the close partnership between Indonesia and the UK.”
Nikhil Rathi, CEO, London Stock Exchange Plc:
“We are delighted to welcome Minister Sri Mulyani Indrawati, Minister Rini Soemarno and Mr Bintang Perbowo and his team to London Stock Exchange to celebrate Wijaya Karya’s successful Komodo bond issuance on our International Securities Market.
“As a global market place, London Stock Exchange is committed to supporting Indonesia’s growth through capital raising in Indonesian rupiah. Through our International Securities Market, issuers benefit from an efficient listing process and access to the deepest pool of internationally oriented capital in the world. With 2018 off to a great start with the first Komodo bond issuance, we look forward to continuing our long-term partnership on Komodo bonds as well as leveraging our expertise in sustainable and Islamic finance to help Indonesia achieve its ambitious growth and infrastructure goals.”
London’s expertise in helping raise capital in Indonesian rupiah
Wijaya Karya’s Komodo bond becomes the 19th active Indonesian rupiah-denominated bond listed on London Stock Exchange bringing the total amount outstanding to approximately [$2.7 billion]
Other issuers include supranationals and large investment banks including Inter-American Development Bank, European Bank for Reconstruction & Development, Barclays and HSBC that have raised over $2 billion equivalent to finance operations in Indonesia
Wijaya Karya’s bond listing is the latest in a long line of global first bond issuances by Asian issuers on London Stock Exchange.
December 2017 – Jasa Marga lists world’s first Komodo bond on London Stock Exchange’s International Securities Market, raising IDR 4 trillion (USD 295.7 million equivalent)
September 2017 – IREDA lists first Masala bond on London Stock Exchange’s new International Securities Market
May 2017 – NTPC lists the first bond on London Stock Exchange’s new International Securities Market
September 2016 – British Columbia issues world’s first Masala bond by a foreign government entity
August 2016 – NTPC lists world’s first Indian green Masala bond and first Masala bond by a quasi-sovereign issuer
July 2016 – HDFC lists world’s first Masala bond by an Indian corporate
June 2016 – first Chinese sovereign RMB bond issued outside of China
April 2016 – Hungary becomes first Sovereign from continental Europe to issue a RMB bond
August 2015 – International Finance Corporation (IFC), a member of the World Bank Group, issues world’s first green Masala bond, raising $49 million equivalent
November 2014 – IFC lists first Masala bond, going on to issue a further three Masala bonds in London over two years.
A February 2022 survey of 155 finance executives revealed that 55% of respondents are aiming…
Marketing analytics are responsible for influencing just over half (53%) of marketing decisions, according to…
In addition to affordability challenges, recent volatility in mortgage rates is making it difficult for…
The 25 emerging technologies to watch on the Gartner, Inc. Hype Cycle for Emerging Technologies,…
Four in ten (40%) globally say inflation is one of the biggest issues affecting their…