The Indonesian government will issue samurai bonds worth 60 billion yen. Director General of Debt Management, Rahmat Waluyanto, said the issuance has been approved by Finance Minister.
Rahmat said the debt withdrawal is carried out after a pricing set on November 4. The government decided to issue another Samurai Bonds to gain more investors in Japan's stock exchange.
It is the second time that the Samurai Bonds will be issued using the guaranty facility from Japan Bank for International Cooperation (JBIC). The initial offering of Samurai Bonds were set out July 2009 worth 35 billion yen.
The issuance is aimed at alleviating dependence on certain investors as well as optimizing Japan's stock exchange as a financing source at lower costs.
The issued Samurai Bonds are of 10 years of tenure. The government set 1.6 percent of coupon rate. The issuance uses the form of private placement.
Quite a number of Japanese investors respond the issuance enthusiastically. Despite a surplus in demand, the government sets to issue Samurai Bonds at 60 billion yen.
Based on the investors, Samurai Bonds are allocated to banks (77.2 percent), insurance (20.3 percent), asset management (0.3 percent and other sectors at 2.2 percent.
The joint lead arrangers in the deal include Nomura Securities Co. Ltd and Daiwa Securities Capital Markets Co. Ltd.
source : vivanews.com
