JAKARTA (TheInsiderStories) - Indonesia Eximbank, which focuses on providing export import financing facilities, announced its plan to raise funds of Rp4 trillion ($303.7 million) from issuing fixed-rate bonds. The proceeds of which will be used to expand its financing activities this year.
The bank said the bonds issue is the first phase of the planned total of Rp24 trillion ($1.82 billion) worth of bonds to be issued in phases. The bonds will be divided into three tranches – A, B, C, with tenor of 370 days, 3 years and 5 years respectively.
The coupon of each bond tranche is yet to be determined. The bonds will be offered on June 1-3, 2016, followed by listing on the Indonesian Stock Exchange.
The bank has appointed Bahana Securities, BCA Sekuritas, CBMB Securities Indonesia, Danareksa Sekuritas, DBS Vickers Securities Indonesia, Indo Premier Securities and Mandiri Sekuritas as underwrites of the bonds issue.
The three tranches of bonds will mature on June 18, 2017, June 8, 2019 and June 8, 2021.
The bank said all the proceeds of the bonds will be used to fund domestic companies exports activities.
As of end 2015, the bank has total assets of Rp84.97 trillion, with liabilities amounting to Rp72.61 trillion.
Indonesia Eximbank has been active in providing export financing in the past five years as reflected in its average compound annual growth rate (CAGR) of loans of 32.64%., with the highest was recorded in 2013 growing by 49.7%.
In 2015, it provides exports financing of Rp74.83 trillion, up from Rp55.2 trillion in previous year, or up by 30.5%. (*)