Wijaya Karya Tbk (WIKA) and Jasa Marga Tbk (JSMR) are ready to issue Global IDR Bonds (Komodo Bonds) by the end of this year. The proceeds will be used to finance the company’s infrastructure projects.
Rini M Soemarno, Minister of State-Owned Enterprises (SOE), said the Komodo Bonds offer will be implemented after the rating process is completed. “International rating is time-consuming. JSMR is targeting to offer first in the first week of November 2017, followed by WIKA,” said Rini. PLN is also planning to issue Komodo Bonds in the first quarter of 2018.
In the roadshow to several countries, these companies get a positive response from investors related to the issuance of Komodo Bonds. “Many foreign investors are willing to buy bonds in rupiah but the transaction does not want in Indonesia and this is what we are trying to achieve,” said Rini.
The value of Komodo Bonds issuance is estimated to be equivalent to USD 200 million to USD 300 million. Some countries have successfully issued global bonds in local denominations, such as China with Dim Sum Bonds, India with Masala Bonds, and the Philippines with Global Peso. (*)