Komodo bonds

Komodo bonds at a glance

22
Komodo bonds
42bn
IDR raised
7
issuers

Supporting Indonesia’s economic development

A Komodo bond is the shorthand way of referring to global Indonesian rupiah (IDR) bonds. These are designed to help Indonesian state-owned enterprises (SOEs) finance infrastructure development plans, and to allow corporates to access large-scale foreign investment without foreign exchange currency risk. 

Indonesia is one of the fastest-growing economies in the G20 and is an increasingly important destination for global investment flows. This positive outlook is in part driven by
its significant investment in infrastructure development: according to the World Bank, Indonesia will need $500bn over the next five years to build roads, ports and bridges.

London Stock Exchange has become  the leading centre for the issuance of  Komodo bonds, building on the first bond issued on our markets in 2014. 

A global centre of expertise

London provides access to the deepest pool of international capital in the world, and accounts for 70% of the secondary market turnover in international bonds.

With 22* active Indonesian rupiah-denominated bonds, London Stock Exchange is building on its leading position as the largest Komodo bond centre. Supranationals and large investment banks including Inter-American Development Bank, European Bank for Reconstruction & Development (EBRD), Barclays and HSBC have all chosen London for their repeat IDR issues, raising the equivalent of more than $2.2bn to finance operations in Indonesia. Raising capital in London ensures issuers are benchmarked against global comparables and are able to reach the broadest possible range of global investors globally.

International Securities Market (ISM) is an exchange-regulated market of LSEG, aimed at professional investors and tailored to issuers of debt securities. It is has been designed to provide issuers with an efficient and streamlined admission process. Indonesian issuers seeking admission to ISM need only liaise with LSEG.

Those issuers joining ISM benefit from London’s distinguished reputation, heritage and status. Due to its flexibility, ISM’s innovative Rulebook allows international issuers to utilise local GAAP accounting standards when producing financial disclosure.

A medium-term note (MTN) programme is an efficient way of listing debt securities. Under the umbrella of a single base prospectus, a number of notes can be drawn down in a cost-effective manner. MTNs are most similar to revolving credit lines, as they enable issuers to take advantage of changes in market conditions, and are a convenient cashflow management tool allowing quick access to funds. For MTNs on ISM, LSEG approval is required for the base prospectus only. Subsequent draw-down issues are allowed at any time during the one-year validity period of the prospectus, subject to publication of a relevant pricing supplement by 2pm the day before the issue.

*Data as of September 2019

Watch our short film about Komodo Bonds
Find out about the landmark IDR 4 trillion bond issued by Jasa Marga, the state-owned Indonesian toll road operator.
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Komodo bonds brochure

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Find out about companies we have welcomed to our markets

74.04
London Stock Exchange welcomes Phoenix Group Holdings plc celebrating the acquisition of ReAssure Group plc

On 22 July Phoenix Group plc completed the acquisition of ReAssure Group plc from Swiss Re Group. The transaction is another significant milestone on Phoenix’s growth journey and has established Phoenix as the largest long-term savings and retirement business in the UK with circa £300 billion of assets under administration and circa 14 million policies. 
 
The acquisitio

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107.04
London Stock Exchange welcomes The Hashemite Kingdom of Jordan $1.75bn dual-tranche bond listing on the Main Market

London Stock Exchange today welcomes the Hashemite Kingdom of Jordan placing its US$500m 4.95% due July 2025 and US$1.25bn 5.85% due July 2030 dual-tranche benchmark Eurobonds to the London Stock Exchange’s Main Market. The deal was more than 6 times oversubscribed, receiving bids in excess of $6.25bn.

The Kingdom intends to use the net proceeds of the issue of the Notes to finan

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London Stock Exchange welcomes Riyad Bank celebrating Riyad Bank tier 2 USD sukuk

London Stock Exchange welcome Riyad Bank for a Market Open Ceremony, to celebrate the admission of USD 1.5 bn USD Tier 2 Sukuk. The Market Open Ceremony was attended by Riyad Bank senior management, including CEO Mr. Tareq Al Sadhan, Saudi Ambassador to the UK His Royal Highness Prince Khalid Bin Bandar Al Saud, Rt Hon Conor Burns MP, Minister of State DIT and other dignitaries. 

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London Stock Exchange Group Welcomes Akinwumi Adesina, President of the African Development Bank, celebrating partnership with LSEG

London, United Kingdom, 22 January 2020 – Don Robert, Chairman of London Stock Exchange Group welcomed the president of the African Development Bank to open markets for trading at London Stock Exchange on Wednesday 22 January.

The reception in London followed the African Development Bank’s Africa Investment Forum, the Bank’s innovative market-place for accelerating investment into the

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