TEMPO.CO, Jakarta - The Finance Ministry launched new retail bonds, code-named ORI013 on Thursday, September 29, 2016 aiming to raise Rp20 trillion (US$1.5 billion). The bid period for the new retail bonds will end on October 20, 2016.
“This is the fourth launch of retail instrument in 2016. The launch is aimed at providing non-institution public to participate in the development and budget financing,” Finance Ministry’s director general for financing and risk management Robert Pakpahan said in Jakarta on Thursday, September 29, 2016.
Robert revealed that the retail bonds will carry a coupon rate of 6.6 percent per year with a payment due on the 15th day of every month.
“The coupon will be pained for the first time on November 15. The rate is lower than last year. However, since our economic fundamentals are better, the real interest rate is still positive,” he explained.
According to Robert, the minimum order for ORI013 is Rp5 million (US$384.6), while the maximum order is Rp3 billion (US$230,700).
“The holding period is set at two months or two coupon payment periods. It means that the retail bonds cannot be sold immediately to a secondary market. They have to wait for two months,” he went on.
After the bidding offer ends in late-October, Robert revealed that the distribution of the retail bonds would be conducted on October 24, followed by a settlement process on October 26. The new retail bonds will mature on October 15, 2019.
Finance Ministry’s director for government debt papers Loto S. Ginting hopes that ORI013 would attract retail investors across the country.
“We hope that sales of ORI013 can be conducted across the country, particularly in central and eastern parts of Indonesia,” Loto said.
ANGELINA ANJAR SAWITRI
