Sri Mulyani Issues Samurai Bonds, Raises 104.8 Billion Yen in Funds

Armfalcon.com, JAKARTA — The government through the Ministry of Finance conducted a transaction of issuance of Government Bonds (SUN) in foreign currencies denominated in Japanese yen or Samurai Bonds of 104.8 billion yen on May 19 2023. In this issuance, there are four series Issued were 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. Bonds with a tenor of seven years and 10 years are Blue Bonds or blue bonds.

Thus, the government has also issued SUN Blue Bonds denominated in Japanese yen (Samurai Bond) for the first time amounting to 20.7 billion Japanese yen. This transaction is the government’s commitment to sustainable financingespecially in terms of achievement 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 issuance of the Blue Bonds refers to the SDGs Government Securities Framework (SDGs Framework) which was compiled by the government in 2021 which has received a Second Party Opinion from CICERO and IISD. SDGs Framework and policies blue financing has also been socialized to potential Japanese investors. The Blue Bonds issuance transaction in the Japanese market received a positive response from investors.

The issuance of Samurai Bonds this time is intended to finance the 2023 state budget deficit. The proceeds from the issuance of Blue Bonds are to fund projects that qualify as Eligible SDGs Expenditures in 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 is supported by the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of National Development/Bappenas, Ministries/Institutions that have projects as underlying, as well as the United Nations Development Program (UNDP). “The issuance of Blue Bonds will complement the APBN financing portfolio and show the Government’s increasingly strong commitment to sustainable financing. In addition, we also hope that the issuance of Blue Bonds will open up other blue financing alternatives for Indonesia,” said Director General of Financing and Risk Management of the Ministry of Finance Suminto.

Meanwhile, Deputy for Coordination of Maritime Sovereignty and Energy, Coordinating Ministry for Maritime Affairs and Investment Jodi Mahardi welcomed the issuance of the world’s first Sovereign Blue Bonds based on these ICMA Principles.

“The success of this issuance is inseparable from the close synergy between the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of Finance, the Ministry of National Development Planning/Bappenas and the relevant technical ministries in preparing for the issuance of Samurai Blue Bonds. We hope that the issuance of Samurai Blue Bonds will be one of the best practices blue financing at Indonesia’s chairmanship in ASEAN and the Island and Archipelago High Level Meeting (AIS Forum) at the end of 2023,” said Jodi.