Nature:
Investors lend money to the issuer. The issuer must repay principal plus a fixed return (coupon) on agreed schedules.
Typical Tenor:
Short‑ to medium‑term , typically around 3 months and max is 24 months.
Investor rights:
Receives periodic coupon payments and principal at maturity
Issuer obligations:
- Provide a full prospectus outlining the project, risk factors and repayment schedule.
- Ensure funds are held at a bank custodian and recorded in KSEI.
- Publish periodic financial reports and disclose material events to the investors.
- Comply with limits on fundraising amount and frequency as set by POJK 17/2025.
Risk/Return:
More predictable cash flow than equity but subject to default risk; no capital guarantee.
Nature:
Investors buy shares of the company. They become co‑owners with rights to dividends and potential capital gains.
Typical Tenor:
No fixed maturity — the investment is tied to the life of the company unless shares are bought back or sold privately through secondary market.
Investor Insight:
- Share in profits if dividends are paid.
- Voting rights in general meetings (subject to the share class).
- Ability to participate in future corporate actions (e.g. rights issues).
Issuer obligations:
- Disclose business plan, risks and use of proceeds.
- Hold regular shareholder meetings and report financial performance annually.
- Manage shareholder registry via KSEI and update any changes promptly.
- Comply with OJK’s continuous disclosure obligations.
Risk/Return:
Higher potential upside but also higher risk—returns depend on the company’s performance; no guaranteed income.
Mezzanine
Hybrid Debt + Profit Sharing
Nature:
A flexible structure combining a standard Debt Securities with a profit‑sharing component. Investors receive fixed coupons plus a share of revenue.
Typical Tenor:
Similar to EBU max 24 months
Investor Insight:
- Guaranteed coupon payments .
- Additional revenue/profit share from the project.
- Priority for repayment sits between regular debt and equity.
Issuer obligations:
- Comply with all EBU disclosure rules (prospectus, escrow, reporting) plus transparent calculation of the profit share.
- Ensure investors understand the hybrid nature (not a capital guarantee, and returns depend partly on business performance).
Risk/Return:
Higher potential return than plain debt (because of the profit share) but still less risky than pure equity; risk sits between Debt and Equity
