WIKA Booked The Most Global IDR Bonds Transaction
JAKARTA - PT Wijaya Karya (WIKA) (Persero) Tbk., One of the largest state-owned construction and infrastructure company in Indonesia, successfully booked the most global IDR bonds transaction. The reason is WIKA Komodo Bonds get orders in around Rp 13 trillion or oversubscribed up to almost 250 %.
Komodo Bonds WIKA who got a Ba2 rating from Moody's and BB from Fitch both with stable outlook are booked at par with 7.70 % bond coupon per year after going through the initial offer stage at the coupon rate of 8.00 %.
Komodo Bond is a term for bonds or rupiah bonds issued by Indonesian institutions that are sold and stated abroad (global IDR bond). Basically, corporations and governments usually sold bonds in dollar denominations abroad (global USD bond).
The name of "Komodo" which is very typical of Indonesia is a gift from President Jokowi. Although issued in rupiah denomination, the investor will still receive interest and redemption in US dollar (USD settlement) when due date according to the rupiah-dollar exchange rate at the time of payment.
Overall, this demonstrates the strength of WIKA risk profile and also global investors interests to invest in Indonesia infrastructure sector. WIKA's President Director, Bintang Perbowo, revealed that WIKA is proud to have successfully booked Komodo Bonds transaction to support infrastructure development in Indonesia.
"We would like to extend our gratitude for the support of the Coordinating Ministry for Economic Affairs, Bank Indonesia, the Ministry of Finance and the Ministry of SOEs and all those who have supported WIKA's success in this Komodo Bonds transaction," said Bintang Perbowo in a press release (26/1/2018).
WIKA is a State-Owned Construction & Infrastructure which trusted to handle a large number of national strategic projects such as Balikpapan-Samarinda toll road, Simpang Susun Semanggi, Jatigede Dam and various oil and gas and power generation projects, as well as various transportation infrastructure and property development projects, themed Transit Oriented Development.
"The profile of global investors which interested in WIKA Komodo Bonds is 67 percent from Asia, 13 percent from Europe and the Middle East, 10 percent from the United States and 10 percent from Indonesian domestic investors," conclude Bintang Perbowo.