FYI, current transaction on Indonesia Islamic Capital Market Best regards, Arlyana Abubakar Senior Economic Analyst Foreign Debt Analysis and Investor Relation Division International Directorate Bank Indonesia
Indonesia's PLN raises 2.2 trillion rupiah from bond sales. 12/Jan/2009 Intellasia | Reuters Indonesia's state electricity firm PT Perusahaan Listrik Negara has raised 2.2 trillion rupiah from conventional and Islamic bond issues, a securities firm involved in the deals said on Friday. Indonesia's monopoly power supplier had aimed to raise 1.5 trillion rupiah from the bond issues, to help finance investment in power transmission. It has about 24,000 MW of generating capacity but most of its plants are old, so daily output is far below capacity. Sonny Thendian, head of trading sales at PT Indo Premier Securities, said that investors had been attracted by the high yield and potential for bond prices to rise as the central bank continued to lower interest rates. Bank Indonesia cut its key interest rate by 50 basis points to 8.75%, more than expected, on January 7. "The highest demand came from insurance firms and pension funds," said Thendian. PT Indo Premier Securities, PT Danareksa Sekuritas, PT Trimegah Securities Tbk were underwriters for the issues. PLN raised 1.44 trillion rupiah from two series of fixed-rate conventional bonds. The five-year bond, maturing in 2014, has a coupon of 14.75%, while the seven-year bond, due 2016, has a coupon of 15%. It also raised 760 billion rupiah from two series of Islamic bonds, or sukuk, which were issued under the "ijarah" or leasing arrangement. One series, due in 2014, has a coupon of 14.75%, while the other series, due in 2016, has a coupon of 15%. Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets. ________________________________ "This e-mail (including any attachments) is intended solely for the addressee and could contain information that is confidential; If you are not the intended recipient, you are hereby notified that any use, disclosure, copying or dissemination of this e-mail and any attachment is strictly prohibited and you should immediately delete it. This message does not necessarily reflect the views of Bank Indonesia. Although this e-mail has been checked for computer viruses, Bank Indonesia accepts no liability for any damage caused by any virus and any malicious code transmitted by this e-mail. Therefore, the recipient should check again for the risk of viruses, malicious codes, etc as a result of e-mail transmission through Internet.”
