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PLN issues Rp 3 trillion of Samurai Bond

16 September 2019 11:06

JAKARTA. PT PLN (Persero) has listed a Samurai Bond in Japan, through which it has pocketed ¥23.2 billion or Rp 3 trillion. The bond was issued in three tranches with respective tenors of three, five, and 10 years and a fixed coupen.

The bond is rated Baa2 by Moody's, BBB by Standard & Poor's, and BBB by Japan Credit Rating. PLN CFO Sarwono Sudarto said that the issuance is significant because it marks PLN's success in issuing bonds in currencies other than USD and EUR.

According to Mr Sudarto, the transaction is also significant because it is the first Samurai Bond issued by an Indonesian state-owned enterprise (SOE). "This has paved the way for other issuers from Indonesia and other ASEAN countries to access the Japanese bond market," he said in an official statement, Sunday (15/9).

Mr Sudarto added that prior to the bond's public offering to investors in Japan PLN had met with potential investors in Tokyo in July 2019.

On September 6, 2019, PLN commenced the official initial offering with an initial benchmark price of Yen Swap Offer (YSO)+45-65 bps for the three-year tranche, YSO+75-95 bps for the five-year tranche, YSO+80-100 bps for the seven-year tranche, and YSO+90-105 bps for the 10-year tranche.

The allocation of the bond issuance is spread across several investor types including local banks (36%), life insurers (24%), regional banks (15%), offshore banks (12%), asset managers (9%), and others (4%). A number of financial institutions assisted the corporate action, such as Mitsubishi UFJ Morgan Stanley Securities Co Ltd, Mizuho Securities Co Ltd, Nomura Securities Co Ltd, and SMBC Nikko Securities Inc. (AM/MS)

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