Government Expects To Raise Rp20 Trillion ORIOIO Issuance

Jakarta, Sept 20 (Antara) - The government expects to raise Rp20 trillion from the issuance of ORI010 retail bond series to be offered to the public from September 20 to October 4, with an interest rate of 8.5 percent. "The target of the ORI010 issuance is Rp20 trillion, which is the highest since it was first issued," said Director General of Debt Management at the Ministry of Finance Robert Pakpahan on Friday. The opening of the bidding period at the Mangrove Eco-Tourism Area was also attended by Deputy Finance Minister Anny Ratnawati, Director of State Securities Loto Srinaita Ginting, and ORI010 selling agents. Robert mentioned that the retail bond will mature in three years on October 13, 2016, and people can receive it with a minimum order of Rp5 million and maximum order of Rp3 billion. The allocation of ORI010 sales would be held on October 7, 2013, while the settlement date is on October 9, 2013, and coupon payment every 15th of the month, with the first one on November 15, 2013. Anny Ratnawati expressed optimism that the public would be keen to purchase the bond and that the retail bond would educate people that it can be used as an investment instrument apart from savings accounts and time deposits. "Looking at the current global condition and the recent decision of the Fed, the issuance of ORI would attract local consumers. We are optimistic that it will be oversubscribed," she said. Loto Srinaita Ginting, meanwhile, mentioned that the coupon has been set at 8.5 percent, based on time deposit interest, macro-economic developments, and the current global situation. "As the global situation is still uncertain and liquidity is tight, the 8.5 percent is optimal and acceptable by investors. We are optimistic that with the 8.5 percent rate, the highest target can be achieved," said Loto. Twenty agents have been appointed, and they can be contacted by the public for the purchase of the bond. They are Citibank, PT Bank ANZ Indonesia, PT Bank Bukopin Tbk., PT Bank Central Asia Tbk., PT Bank CIMB Niaga Tbk., PT Bank Danamon Indonesia, PT Bank Internasional Indonesia Tbk., PT Bank Mandiri Tbk., PT Bank Negara Indonesia Tbk., PT Bank OCBC NISP Tbk., and PT Bank Panin Tbk. Other agents are PT Bank Pembanguna Daerah Jawa Barat and Banten Tbk., PT Bank Permata Tbk., PT Bank Rakyat Indonesia Tbk., PT Bank UOB Indonesia, PT Danareksa Sekuritas, PT Mandiri Sekuritas, PT Trimegah Securities Tbk., Standard Chartered Bank, and the Hongkong and Shanghai Banking Corporation Ltd. To meet the sales target, ORI sales agents will conduct marketing campaigns in 28 cities, including those in central and eastern regions, this year.