London leads Komodo bonds issuance


LSEG London Stock Exchange Group

London Stock Exchange Group (LSEG) announced that it has welcomed Wijaya Karya, one of the largest listed state-owned infrastructure and EPC (engineering, procurement and construction) companies in Indonesia, to celebrate the successful issuance of its first Komodo bonds on London Stock Exchange’s International Securities Market (ISM).

Wijaya Karya’s three-year Komodo bonds raised IDR 5.4 trillion (USD 405 million equivalent), with a coupon of 7.7 per cent. The bonds attracted global investor support and were more than two and a half times oversubscribed. The proceeds will be used by Wijaya Karya to support the funding of significant investment and infrastructure projects across Indonesia.

The landmark bond issuance from Wijaya Karya comes less than two months after the first-ever Komodo bond listed on London Stock Exchange, by state-owned Indonesian toll road operator, Jasa Marga. Wijaya Karya’s Komodo bonds are the largest to date. Together Wijaya Karya and Jasa Marga are paving the way for the opening of the global Komodo bond market to support Indonesian’s infrastructure development.

Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia:

The Indonesian Ministry of Finance have been striving to create a conducive ecosystem for infrastructure development. In order to create an inclusive growth, infrastructure development is a necessity.

Strong macroeconomic fundamentals combined with credible and responsible budget that we strive for have received acknowledgement from worldwide community. Last year S&P and Fitch upgraded our rating. This is the first time that all 3 rating agencies assigned investment grade rating to Indonesia. This certainly helps to lower borrowing cost and gives investor the confidence to invest in Indonesia. Nevertheless we always encourage innovative and creative financing, and Komodo Bond is certainly one of them.

Once again, we want to congratulate WIKA on the success of its Komodo Bond issuance which is the largest to date. Not only this is a testament to the good work of the company but also to the strong conviction in Indonesia’s growth story.

 

Nikhil Rathi, CEO, London Stock Exchange Plc:

We are delighted to welcome Minister Sri Mulyani Indrawati, Minister Rini Soemarno and Mr Bintang Perbowo and his team to London Stock Exchange to celebrate Wijaya Karya’s successful Komodo bond issuance on our International Securities Market.

As a global market place, London Stock Exchange is committed to supporting Indonesia’s growth through capital raising in Indonesian rupiah. Through our International Securities Market, issuers benefit from an efficient listing process and access to the deepest pool of internationally oriented capital in the world. With 2018 off to a great start with the first Komodo bond issuance, we look forward to continuing our long-term partnership on Komodo bonds as well as leveraging our expertise in sustainable and Islamic finance to help Indonesia achieve its ambitious growth and infrastructure goals.

London’s expertise in helping raise capital in Indonesian rupiah

  • Wijaya Karya’s Komodo bond becomes the 19th active Indonesian rupiah-denominated bond listed on London Stock Exchange bringing the total amount outstanding to approximately [$2.7 billion]
  • Other issuers include supranationals and large investment banks including Inter-American Development Bank, European Bank for Reconstruction & Development, Barclays and HSBC that have raised over $2 billion equivalent to finance operations in Indonesia

Wijaya Karya’s bond listing is the latest in a long line of global first bond issuances by Asian issuers on London Stock Exchange.

  • December 2017 – Jasa Marga lists world’s first Komodo bond on London Stock Exchange’s International Securities Market, raising IDR 4 trillion (USD 295.7 million equivalent)
  • September 2017 – IREDA lists first Masala bond on London Stock Exchange’s new International Securities Market
  • May 2017 – NTPC lists the first bond on London Stock Exchange’s new International Securities Market
  • September 2016 – British Columbia issues world’s first Masala bond by a foreign government entity
  • August 2016 – NTPC lists world’s first Indian green Masala bond and first Masala bond by a quasi-sovereign issuer
  • July 2016 – HDFC lists world’s first Masala bond by an Indian corporate
  • June 2016 – first Chinese sovereign RMB bond issued outside of China
  • April 2016 – Hungary becomes first Sovereign from continental Europe to issue a RMB bond
  • August 2015 – International Finance Corporation (IFC), a member of the World Bank Group, issues world’s first green Masala bond, raising $49 million equivalent
  • November 2014 – IFC lists first Masala bond, going on to issue a further three Masala bonds in London over two years.

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London leads Komodo bonds issuance

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