Korea Investment & Securities succeeds in local currency bond sale, IPO in Indonesia

[Photo by Korea Investment & Securities Co.]

Korea Investment & Securities Co. successfully sold its first-ever Indonesian currency-denominated bonds and led an initial public offering of a local firm in the Southeast Asian country, rapidly expanding its presence in the country’s investment banking market.

Its Indonesia subsidiary, PT Korea Investment and Sekuritas Indonesia (KISI), recently sold Bank KB Bukopin Tbk’s 2 trillion-rupiah ($140.6 million) worth bonds, according to investment bank industry sources on Thursday. It led the underwriting syndicate comprised of PT Indo Premier Investment Management and Mandiri Sekuritas for Bank KB Bukopin, an Indonesian unit of Korea’s leading commercial bank KB Kookmin Bank.

The debt was sold in three-year senior unsecured bonds worth 1 trillion rupiahs ($70 million) and subordinated bonds, dated five and seven years, worth 1 trillion rupiahs ($70 million) in total. The 3-year debt was issued at a coupon rate of 6.25 percent, 50 basis points below the indicative coupon rate amid overwhelming responses from investors.

With the sale, Korea Investment & Securities has become the first Korean securities firm to lead an underwriting project for bonds issued in rupiah.

In early September, KISI also successfully led underwriting syndicate for local crude coconut oil manufacturer PT Indo Oils Perkasa Tbk (OILS)’s initial public offering. OILS raised 40.5 billion rupiahs ($2.8 million) from its public offering, which recorded a 14:1 competition ratio during public subscription.

Korea Investment & Securities established its Indonesian subsidiary in 2018 after acquiring local securities broker PT DANPAC Sekuritas.

The Korean securities major operates in other Asian markets, including Hong Kong and Vietnam.

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