By Susanna Moon
Chicago, Dec. 8 – Asian Development Bank said it issued Rp 1 trillion of 6.3% 11-year offshore Indonesian rupiah-linked bonds.
JPMorgan is the lead manager.
Proceeds will be used to support ADB local currency lending in Indonesia.
The transaction is the first bond issue from a multilateral development bank of which Indonesia is a shareholder, and the first time for a multilateral development bank to raise Indonesian rupiah funding to support local currency loans in the same currency, according to a bank announcement.
The bonds are denominated in Indonesian rupiah but settled in dollars.
The bonds were placed principally with banks and fund managers in the Americas and Europe.
“ADB is committed to deepening the pool, extending the tenor, and diversifying the currency mix of local currency available to support our loan operations,” ADB treasurer Pierre Van Peteghem said in the press release.
Added Scenaider Siahaan, director of financing strategy and portfolio at directorate general of budget financing and risk management - ministry of finance, Republic of Indonesia: “ADB's first bond issue in Indonesian rupiah represents an important step in bolstering diversification of infrastructure financing instruments as well as fostering development of Indonesia’s capital market.”
ADB said that in 2016 it approved $1,256,000,000 of sovereign loans and $470 million of non-sovereign assistance in Indonesia, the bank’s sixth largest shareholder.
The issuer is a development bank based in Manila.
| Issuer: | Asian Development Bank
|
| Issue: | Offshore Indonesian rupiah-linked bonds
|
| Amount: | Rp 1 trillion
|
| Maturity: | December 2028
|
| Agent: | JPMorgan
|
| Coupon: | 6.3%
|
| Announcement date: | Dec. 8
|
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