Government Issues IDR 11.35 Trillion Samurai Bonds

Armfalcon.com, JAKARTA — The Government of the Republic of Indonesia successfully executed a transaction for issuing Government Bonds (SUN) in foreign currencies denominated in Japanese yen (Samurai Bonds) worth 104.8 billion Japanese yen or equivalent to Rp. 11.35 trillion on May 19, 2023. In an official statement received in Jakarta, Sunday (21/5/2023), Director General of Financing and Risk Management of the Ministry of Finance Suminto revealed that the issuance of Samurai Bonds this time was intended to finance the 2023 State Budget (APBN) deficit.

In this issue, there are four series issued, namely RIJPY0526B with a three-year tenor, RIJPY0528B with a five-year tenor, RIJPY0530 with a seven-year tenor, and RIJPY0533 with a 10-year tenor, where the series with a tenor of seven years and 10 years are Blue Bonds.

In detail, RIJPY0526B is issued with a value of 46.9 billion Japanese yen with a coupon of 0.74 percent and will mature on May 26, 2026. Meanwhile, RIJPY0528B is issued with a value of 37.2 billion Japanese yen and will mature on May 26, 2028, with a coupon of 0, 98 percent.

Then, RIJPY0530, which will mature on May 24, 2030, will be issued with a value of 14.7 billion Japanese yen with a coupon of 1.2 percent. RIJPY0533, which has the longest tenor so it matures on May 26, 2033, has a coupon of 1.43 percent and is issued at 6 billion Japanese yen.

Suminto said the issuance of the Blue Bonds demonstrated the Indonesian Government’s commitment to sustainable financing, particularly in the context of achieving the Sustainable Development Goals (SDGs), as well as significant progress for blue financing.

The issuance of Blue Bonds is also in line with the government’s financing strategy to diversify financing instruments and broaden the investor base. The Blue Bonds issuance transaction in the Japanese market received a very good response from investors.

Proceeds from the issuance of Blue Bonds to fund projects that qualify for spending on SDGs that meet the requirements within the SDGs framework. Sectors that meet the requirements are selected through the Climate Budget Tagging mechanism to mark SDGs expenditures that meet the Blue Focus requirements.

“The issuance of Blue Bonds will complement the APBN financing portfolio. We also hope that the issuance of Blue Bonds will open up other blue financing alternatives for Indonesia,” Suminto added.

The issuance of Blue Bonds is supported by the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of National Development/Bappenas, Ministries/Institutions that have projects as underlying, and the United Nations Development Program (UNDP).

The initial issuance of Blue Bonds also reaffirmed Indonesia’s leadership in a sustainable economy in the global market as the first country in the world to issue Blue Bonds, which are in line with International Capital Market Association (ICMA) principles.

source : Between