Government Issues Rp9.04 Trillion Samurai Bond, Indonesian Embassy In Tokyo: Gets Extraordinary Trust From Investors In Japan

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Embassy in Tokyo reported that Indonesian Government Securities (SUN) denominated in Japanese yen (Samurai Bonds) were successful in Japan and scored a nominal benchmark size of 81 billion Japanese yen or equivalent to Rp9.04 trillion.

The Indonesian Ambassador to Japan and the Federation of Micronesia Heri Akhmadi ensured that the Indonesian Embassy in Tokyo continues to communicate the acceleration of economic recovery to relevant stakeholders in Japan, particularly regarding the ease and credibility of investment to finance development in Indonesia.

"The Indonesian Embassy in Tokyo is strongly committed to playing an active role in campaigning for the positive development of the Indonesian economy and investment at every opportunity to private partners and the Japanese government," said Heri in an official statement quoted by Antara, Friday, June 10.

He explained that one of the concrete instruments for the campaign was the Samurai Bond, which gained tremendous trust from investors in Japan. The issuance of Samurai Bond this time is the third time during the pandemic since July 2020.

The issuance of Samurai Bonds this year is a good achievement and is used according to development financing needs, including efforts to recover the national economy, amidst volatile financial market conditions due to the impact of rising interest rates and tightening global monetary policy, as well as rising geopolitical tensions.

The Joint Lead Arrangers in this transaction are Daiwa Securities Co. Ltd., Mizuho Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Nomura Securities Co., Ltd.

Heri said the types of investors in this transaction consisted of city banks by 12.3 percent, lifers 8.6 percent, asset managers 24.8 percent, central cooperatives 12.3 percent, central public funds 2.5 percent, and regional banks/cooperatives. area 13.2 percent.

Then, property insurance 0.2 percent and another 9.1 percent. Meanwhile, investors from outside Japan accounted for 16.8 percent of the total number of investors.

This positive achievement in the issuance of Samurai Bonds is part of a flexible financing strategy by taking advantage of market conditions with relatively low interest rates, considering that the trend of rising global interest rates will continue in the next few months.