Three more Indonesian state firms eye Komodo bond issuance this year

Komodo Bonds
Indonesian currency Rupiah on hold by a cashier. Photo: Reuters

After a successful London listing of Indonesia’s first Komodo bonds in December, investors should expect more of the said bonds as three of the country’s state-owned enterprises (SOEs) are set to issue them this year, the Jakarta Post reported, quoting the country’s State-owned Enterprises Minister.

Minister Rini Soemarno did not mention the names of the companies that are set to issue Komodo bonds but she said these firms are already computing the funds they expect to collect from the issuance.

If these three SOEs will push through with the planned issuance, they will follow the footsteps of toll road operator PT Jasa Marga, which issued Komodo bonds at the London Stock Exchange (LSE) in December.

It was Indonesia’s first London-listed, rupiah dominated bond and carried a 7.5 percent coupon. The bond was four times subscribed, according to a Reuters report.

Another SOE, construction firm PT Wijaya Karta (Wika) earlier announced plans to issue $400 million worth of rupiah-denominated bonds. It was still not clear if Wika is one of the three companies that Soemarno referred to.

President Joko Widodo earlier approved the plan for SOEs to issue rupiah-denominated global bonds. He also chose the term “komodo bonds”, referring to the Komodo dragon, a very large species of lizards found in eastern Indonesia.

Also Read:

Indonesian giant komodo bonds test demand after masala

Indonesia asks state-owned firms to tap markets for capital