Baker McKenzie and its Indonesian member firm HHP Law Firm have jointly advised on the world's first Komodo bond issuance, by PT Jasa Marga (Persero) Tbk, one of Indonesia's leading infrastructure providers.
The transaction marks the first ever offering of Rupiah denominated bonds by an Indonesia-domiciled issuer, with the senior unsecured fixed rate notes pricing at par, carrying a coupon of 7.50% and a final issue size of IDR 4 trillion. The bonds have a final maturity of three years. Jasa Marga undertook a global roadshow covering Hong Kong, Singapore, London, New York and Boston ahead of announcing the terms of its debut Komodo bonds. The international reach of Baker McKenzie was invaluable in providing support to Jasa Marga globally, including facilitating the dual listing of the Komodo bonds in Singapore and London.
Advising Jasa Marga, Baker McKenzie's team was led in Singapore by partner Pallavi Gopinath Aney, while HHP Law Firm's team was led in Jakarta by partner Iqbal Darmawan.
Commenting on the deal, Iqbal Darmawan said
This is a historic transaction from Indonesia, marking a new level of maturity in Indonesia's capital markets.
"While contributing to the creation of a whole new market definitely posed certain challenges, our Firm is proud to have been involved in such a successful first issuance of Komodo bonds; we're looking forward to many more to come".
Pallavi Gopinath Aney also added that, "We are delighted to have assisted Jasa Marga in this landmark transaction. It was fantastic to work with a client of such high repute in bringing to market a new product. Through our presence in key financial centres, as well as our place as Indonesia's leading law firm, we were able to support our client fully on their debut international bond offering. We are honoured to have had the opportunity to make this small contribution to the development of Indonesia's bond markets."
The success of the Komodo bond issuance has enabled Jasa Marga to further diversify its funding sources, having already executed securitisations of certain toll road revenues and project bond issuances earlier this year.