JAKARTA (TheInsiderStories) – Ministry of Finance (MoF) targeting to reap Rp9 trillion (US$638.29 million) from the Indonesian Retail Bonds series ORI016, said the government official today (10/02). The three years’ notes have a coupon rate 6.8 percent.
Earlier, MoF has launched the retail bonds series ORI015 on Oct. 4 with coupon rated 8.25 percent and raised funds Rp10 trillion.
Director state debt at the ministry, Loto Srinaita Ginting at the launching of ORI016 in Jakarta, said the bond is the first series published through the e-SBN system. This online service aims to facilitate public more easily to invest in retail bonds.
She continued, ORI016 sales have been facilitated by 14 banks, four securities, and five financial technology companies. The bond will be offered from Oct. 2 to Oct. 24. The first coupon will be paid on Dec. 15 until Oct. 15, 2022.
Going forward, Ginting stated, the government will sell Indonesian Retail Bonds through the electronic trading platform (ETF). “At present is not finished yet, we hope that retail bonds can be traded in the form of ETP in 2020,” said the official.
The ministry targeting to raised around Rp80 trillion (US$5.67 billion) from the issuance of 10 retail bonds, both conventional and Sharia. According to director general at MoF, Luky Alfirman, there are four types of debt instruments to be issue in this year, namely Indonesian Retail Bonds, Retail Savings Bond, Retail Sukuk, and Savings Bonds.
With the issuance of these bonds, the government hopes to embrace more retail investors. This year, the government targets to attract 100 thousand retail investors. He stated, “We have used Single Investor Identification so the number of registered investors is truly a single investor, not duplicated as before.”
Alfirman asserted, the issuance of debt instruments was intended to finance the 2019 State Budget‘ deficit, including the implementation of physical and non-physical development. In addition, the government also plans to issue debt instruments in foreign currencies.
This year, he revealed, the ministry still tends to choose to issue four types of global debt instrument, such as global bond, global SUKUK (including green SUKUK), samurai bond and eurobonds.
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