Sellers Propose ORI Coupon Range at 7.25%-8.0%

JAKARTA: Candidates for selling agents for retail bond issuance, ORI-008, have proposed its coupon rate to come in 7.25%-8.0% range to attract investors interest for the bonds.One of the candidates, PT Sucorinvest Central Gani said it will be able to
News Editor
News Editor - Bisnis.com 19 Juli 2011  |  05:44 WIB

JAKARTA: Candidates for selling agents for retail bond issuance, ORI-008, have proposed its coupon rate to come in 7.25%-8.0% range to attract investors interest for the bonds.One of the candidates, PT Sucorinvest Central Gani said it will be able to sell with a coupon rate of up to 8%, according to its director Adrian Rusmana. The same message was also aired by Teddy Atmadja, vice president for product development at BNI, and Karman Pamurahardjo, director at Trimegah Securities.Pamurahardjo said that ORI-008 has a rosy outlook on the back of Indonesias relatively strong economic fundamentals, but added that high yield would still be needed to lure investors.The candidates for selling agents,--18 banks and 7 securities--, have also proposed for the bonds to be issued in October, scaling back an earlier plan of August issuance, with 3 years of maturity period.In the latest retail bond issuance, the government in July last year raised IDR8 trillion worth of so called ORI-007 which carrying a coupon rate of 7.95%. The central banks policy rate, another key variable in deciding ORIs coupon, stood at 6.75% as of July.Officials from the finance ministrys debt office have previously said that ORI needs to offer higher yield compared with the rate offered by banks term deposit so savers can shift some of their funds from term deposits to the retail bond.ORI issuances are part of governments effort to widen its investor-base and deepen the domestic financial markets. ORI can only be bought by Indonesian nationals.Separately, Vice President Boediono said that Islamic debt papers, or sukuk, can be used as a financing alternative for infrastructure projects. Sukuk issuance globally reached $50 billion in 2010, Boediono said, citing data from Islamic Development Bank-Islamic Financial Services Board.Indonesia, with its hundreds of millions Muslim, boasts the biggest Muslim population in the world. But the developments of Islamic finance, including sukuk, have lagged behind its neighbors such as Malaysia and Singapore.To date, Malaysia, with population of around 28 million, remains the top issuer for sukuk outside the Middle East and has become one of the benchmarks for Islamic finance in the world. (T01/NOM)

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Editor : Muhammad Fariz Aulia

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