Indonesia issues Japanese yen bonds worth 920.4 mln USD

Jakarta (Indonesia Window) – The Indonesian government has issued state bonds in in Japanese yen (Samurai Bonds) for the second time since July 2020.

The Samurai Bonds issuance scored a benchmark size of 100 billion yens (around 920.4 billion U.S. dollars) for the seventh time since 2015, according to a written statement from the Indonesian Ministry of Foreign Affairs received here on Monday.

In the midst of the third state of emergency in Japan, the presence of the Indonesian government to issue Samurai Bonds in the Japanese market is the right momentum with very positive achievements.

Indonesian Ambassador to Japan Heri Akhmadi ensured that information, especially regarding the management of incoming investment to finance development in the former country, was always well shared to the latter government.

“The Indonesian Embassy actively updates Indonesia’s economic development to the Japanese government and private sectors. The campaign on Indonesia’s good governance in prudent investment management is also conveyed to Japanese investors and prospectuses. We will continue to carry out Indonesian economic diplomacy for the success of national economic recovery amid the COVID-19 pandemic,” explained Ambassador Heri.

Prior to the transaction, the Indonesian government conducted a non-deal roadshow in online group meetings as well as online one-on-one meetings with Japanese investors.

The roadshows had an impact on the diversity of investors participating in the issuance of Samurai Bonds.

By category, investors in the transaction consisted of city banks (22.2 percent), insurance (7.0 percent), asset managers (31.1 percent), central cooperatives (7.0 percent), central banks (4.0 percent), public funds (0.2 percent), shinkin banks (Japanese deposit institution/regional banks (8.9 percent), and others (19.6 percent).

Meanwhile, investors from outside Japan accounted for 17.7 percent of the total investors.

Reporting by Indonesia Window