Wijaya Karya, one of the largest listed state-owned infrastructure and EPC (engineering, procurement and construction) companies in Indonesia, has successfully issued 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.
Nikhil Rathi (pictured), CEO, London Stock Exchange Plc welcomed Sri Mulyani Indrawati, Minister of Finance Republic of Indonesia; Rini M. Soemarno, Minister of State Owned Enterprises, Republic of Indonesia; Bintang Perbowo, President Director, Wijaya Karya; and The Rt Hon Mark Field, Minister of State for Asia and the Pacific, at the Foreign and Commonwealth Office, to open London trading today.
Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia, says: “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 three rating agencies assigned investment grade rating to Indonesia. This certainly helps to lower borrowing cost and gives investors 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 Wijaya Karya 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.”
Rini M. Soemarno, Ministry of State Owned Enterprises, Republic of Indonesia, says: “State Owned Enterprises (SOEs) play a critical role in the infrastructure development of Indonesia. We are committed to accelerating all strategic projects that will create much-needed connectivity across the country. This is also in line with the government’s focus to ensure that growth increases and inequality declines.”
“The large amount of funding that is required to realise Indonesia’s infrastructure plans means SOEs are expected to continue to innovate and push boundaries on financing solutions. Komodo bonds are increasingly becoming a reliable source that we can tap going forward.”
“The Ministry of SOE is proud with Wijaya Karya’s Komodo Bond issuance as the largest issuance of global IDR-denominated bonds to date. This indicates the depth of the Komodo bond market and the confidence in this product from investors globally. The Ministry will continue to support SOEs looking to tap the Komodo bond market as it is increasingly becoming a reliable source of funding to support Indonesia’s infrastructure development.”
Bintang Perbowo, President Director, Wijaya Karya, says: “Wijaya Karya is very proud to become one of the global-local currency debt market players. Wijaya Karya’s Komodo bond that was more than two times oversubscribed had shown strong global investor support and trust towards Wijaya Karya as well as the future of Indonesia’s infrastructure.”
“Komodo bond is the right instrument for us to match our construction period with our financing period which will bring better performance for Wijaya Karya. We wish to be a key player in the Komodo bond market and will prove to our investors that they are investing in the right company and the right partner; Wijaya Karya.”
The Rt Hon Mark Field, Minister of State for Asia and the Pacific at the Foreign and Commonwealth Office, says: “The launch of this second Komodo Bond so soon after the first demonstrates the amazing appetite for Indonesia and the huge potential of this market. It represents an example of Britain’s global leadership in financial services, and the close partnership between Indonesia and the UK.”
Nikhil Rathi, CEO, London Stock Exchange Plc, says: “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.”