JAKARTA (TheInsiderStories) – Indonesia’s Ministry of Finance (MoF) officially opens the Retail Government Bonds (ORI15) with indicative coupon rate 8.25 percent with tenor of three years, said the government official on Thursday (04/10). The offering period will take place starting today until Oct. 25, 2018.
Director General of Financing and Risk Management for MoF, Lucky Alfirman, said so far the government had issued retail bond Rp17.7 trillion (US$1.22 billion). “In line with the efforts to deepen the domestic financial market, the government is indeed trying to expand the domestic investor base,” he said at the Indonesia Stock Exchange Building.
Some of these efforts, he continued, include increasing the frequency of retail bond issuance compared to the previous year. In 2018, he said, the government issued five retail bond instruments namely the Retail Sukuk (SR010 series), Savings Bond Retail (SBR003 and SBR004 series), Retail Government Bonds (ORI15), and Sukuk Savings (ST002) which are scheduled to be published in November.
“This can simultaneously improve the stability of the domestic government bond market, in addition to securing the financing of the State Budget,” said Affirman.
He reminded, before making an ORI015 purchase order, prospective investors should first understand the information memorandum released today. Information can be accessed through www.kemenkeu.go.id/ori.
Furthermore, Affirman said, in the sale of this latest instrument, the government took 17 distribution partners. It consists of 15 banks and two securities companies, including PT Bank Central Asia Tbk (IDX: BBCA), PT Bank CIMB Niaga Tbk (IDX: CIMB), PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Danamon Tbk (BDMN), as well as PT Bahana Securities.
Please note, ORI015 is a script-less state bond. That means, can be traded on the secondary market and only between domestic investors referring to the third digit of the Single Investor Identification Single Number.
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