HONG KONG, Feb. 27, 2019
HONG KONG, Feb. 27, 2019 /PRNewswire/ -- The 2018 IFR Asia Awards for the category of Indonesia Best Capital Markets Deal was awarded to PT Jasa Marga (Persero) Tbk. by International Financing Review (IFR Asia) as Jasa Marga funding scheme, Komodo Bond, has been successfully attracting infrastructure investments in Indonesia, toll roads in particular.
Steve Garton, representing IFR Asia, presented the award to Jasa Marga Finance Director Donny Arsal at Four Seasons Hotel, Hong Kong, on February 26, 2019.
"Komodo Bond generates new funds, not only from domestic but also global market. The issuer does not even have to bear rupiah-volatility risks. It will hopefully keep developing and become a new funding alternative," says Donny Arsal after receiving the award.
Komodo Bond is a term for a debt security or rupiah denominated-bond which is sold and legally documented on a global scale (global IDR bond). Earlier, corporations and the government used to sell dollar denominated bonds (global USD bond) instead.
Despite the rupiah denominated issuance, investors will acquire the due date repayments with interests in US Dollar (USD settlement) based on the current dollar exchange rate.
Komodo Bond is one of Jasa Marga's five funding scheme breakthroughs, which was globally issued for the first time on November 30, 2017 in which Jasa Marga has managed to issue a Rp4 trillion bond.
The bond is a debt security with a three-year coupon, without guarantee. The bond received Baa3 ranking, by Moody's and BB + by S&P, for its December 11, 2020 due date 7.50% coupon.
Komodo Bond was believed to have created a new asset class for global investors and new ways to fund Asian infrastructures. It also enables Jasa Marga to manage currency risks, particularly after Bank Indonesia urge companies to steer clear of excessive foreign currency-denominated loans.
This is a milestone in the history of Indonesian Capital Market. The bonds are allocated to United States (26%), Europe (19%), Asia (40%) and domestic investors (15%). Based on the type of investors, 84% and 16% are offered to asset management and bank/public institution/private banking, respectively.
Corporate Communication & Community Development Group Head
PT Jasa Marga Tbk.
Plaza Tol Taman Mini Indonesia Indah
Tel. (021) 841 3526/ext. 117/118