Indonesia: Three companies to offer $364m bonds in June

Jakarta Governor Basuki Tjahaja Purnama (left) and Chairman of Bank DKI Honggo Widjojo (right)

Three Indonesian companies are offering Rupiah bond with a total value Rp5 trillion ($364.96 million) this month, to mostly support business expansion plans. Regional bank PT Bank DKI is offering Rp1 trillion in bond issue while state owned airport operator PT Angkasa Pura II (AP II) has a Rp2 trillion issue. Publicly-listed energy firm PT Medco Energi International Tbk (MEDC) is also planning Rp2 trillion bond issue.

Indonesia’s Bank DKI to generate $74.5m from bonds issue

Bank DKI, owned by the DKI Jakarta provincial government, announced its plan to generate funds of Rp1 trillion or $74.5 million through bonds, which will be issued in several phases during next two years.

The proceeds of the bonds issue will be used to fund the bank’s credit expansion. The bonds will carry a coupon rate of 8.5 – 9.4 percent per annum, payable every three months.

The book-building for the bonds issue is set on June 3-14, followed by offering date on June 24-27 and the listing will happen on the Indonesian Stock Exchange on July 1. The bonds have received a rating A+(idn) from PT Fitch Ratings Indonesia.

President Director of Bank DKI Kresno Sediarsi said that the bank’s proven track, strong cash flow and solid operational management has enabled the bank to receive good rating. The offer is the first phase of the bank’s plan to issue bonds amounting to Rp2.5 trillion to be issued in the next few years.

In 2015, the bank recorded net interest income of Rp2.23 trillion, up 14.06% from previous year of Rp1.95 trillion. As of end 2015, the bank’s assets stood at Rp38.64 trillion, third party fund of Rp28.19 trillion and total credit of Rp25.69 trillion.

Kresno said the bank targets its credit to grow by 12.5 per cent in this year.

AP II offered coupon rate 7 to 9.25 percent

AP II, the operator of international airport Soekarno-Hatta and 12 other airports in the western part of Indonesia, is planning a bond issue worth Rp2 trillion – the proceeds of which will be used to fund its airport expansion.

Also Read: Indonesia state airport operator to raise $151m via bond issue

The bonds are comprised of three series – series A with tenor of 5 years, series B with tenor of 7 years and series C with tenor of 10 years. The bonds series carry coupon of 8.5-8.75 percent for series A; 8.75-9 percent for series B; and 9-9.25 percent for series C bonds.

Acting as underwriters for the bonds issue are PT Danareksa Sekuritas and PT Mandiri Sekuritas. The bonds have received rating of idAAA from Pefindo and Fitch Ratings Indonesia.

The company has set offering date on June 27 followed by listing on the IDX on July 1. Around 92 per cent of the proceeds will be used to fund the expansion of the Soekarno-Hatta airport and the remaining 8 per cent will be used to fund the expansion of other airports managed by AP II.

MedcoEnergi offered two series of bond

MedcoEnergi, has commenced a Rp2 trillion public offering for its bonds. The bonds have been offered with fixed coupon rate 10.3 to 10.8 per cent for three years term and 10.8 to 11.3 per cent for five year’s tenure.

The company seeks to raise Rp6.6 trillion ($485.30 million) through rights issue and bond issuance, said the company in a statement. The proceeds  will be used for expansion and debt repayment.

The management explained that about $238 million of the funds raised, will be used for debt repayments, and $120 million for capital expenditure including assets acquisition.

Medco said the planned rights issue and bonds issue are pending the approval of shareholders at the shareholders meeting on June 29, followed by submission of notification to the Financial Services Authority (OJK) on July 29.

Also Read: Indonesia: O&G co Medco plans $340m rights issue, $146m bond issue

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.