Dentons HPRP proudly shared that its Capital Market team successfully assisted RHB Indonesia in the issuance of the first structured warrant in Indonesia. On 1 September 2022, RHB Indonesia received the effective letter from OJK for the issuance of structured warrant. This effective letter marks the first issuance of structured warrant in Indonesia with total value of Rp20,000,000,000,000 (twenty trillion Rupiah). Commenting on this significant milestone for the company, Kenneth Zao, the Head of Equity Derivatives of RHB Indonesia said RHB Indonesia is driven to be the pioneer in the Indonesia structured warrants market in order to gain the first mover-advantage in one of the biggest equity market in South-East Asia and support the stock exchange in developing new investment products that can be an alternative investment choice for customers.
The issuance of structured warrant is for a two-year period, which will expire on 26 August 2024. In this structured warrant issuance, RHB Indonesia will issue two types of structured warrant: (i) call option – European style structured warrant with IDX30 shares as the underlying shares; and (ii) put option – European style structured warrant with IDX30 shares as the underlying shares. In the first issuance of the structured warrant, RHB Indonesia uses 10 million shares of PT Bank Rakyat Indonesia (Persero) Tbk, 10 millions shares of PT Unilever Indonesia Tbk, and 15 million shares of PT Adaro Energy Indonesia Tbk as the underlying shares. The total value of the issuance of structured warrants that will be issued by RHB Indonesia is Rp20,000,000,000,000 (twenty trillion Rupiah) for a period starting from 1 September 2022 to 9 September 2024.
On this issuance of the first ever structured warrant in Indonesia, Dentons HPRP’s team led by Partners Giovanni Mofsol Muhammad and Fabiola Hutagalung, and supported by Associate Lawyers Rio Fabrianus Pasaribu (Senior Associate), Aletheia Christy Hutabarat (Associate), Natasya Gabriela (Associate), and Yosef Rahdian Putra Siahaan (Associate), actively assisted RHB Indonesia in preparing the base prospectus and term sheet used for the offering of the structured warrant. Moreover, the team also issued legal opinion and legal due diligence report as required under the Structured Warrant Regulation. This is the first time in the history of Indonesian capital market instrument issuance where legal counsel actively holds the pen on the prospectus. For further information related to the services provided, please contact the partners listed under key contact.
