Indonesia

Sri Rejeki Isman (Sritex) sold an opportunistic $225m bond on Wednesday, becoming the first high yield Indonesian issuer in five months. The company offered investors a juicy premium, which was necessary to appease buyers burnt by turmoil around fellow textile company Duniatex.

Defaults have ripped through Delta Merlin Dunia Textile (DMDT), another subsidiary of Indonesian textile company Duniatex, which missed its first dollar bond coupon last week and recently delayed payments on a loan.

Indonesian state-owned power company PLN has diversified its funding sources. It debuted in the Samurai market, raising ¥23.2bn ($215m) from three bonds while paying a small premium over its outstanding dollar curve.

Freeport Indonesia, a mining company that was acquired by Asahan Aluminium (Inalum) last year, is in talks with 10 banks for a $3bn term loan for its capital expenditure.

Indonesian state owned pharmaceutical company Kimia Farma is planning to raise capital through a rights issue of new shares, according to a stock exchange filing.

Asia Pacific Resources International Holdings (April), a subsidiary of Royal Golden Eagle, has made a quick return to the loan market for a self-arranged borrowing of up to $1bn.

Indonesia’s state-owned oil and natural gas company Pertamina has raised a $1.85bn project loan from a group of 12 banks.

Indonesian state-owned energy company Pertamina proved to the dollar bond market that quality credits can win over investors during turbulent times, as it navigated secondary market volatility this week to rake in $1.5bn from a chunky $10bn book. Morgan Davis reports.

Indonesian energy company Pertamina snagged $1.5bn from a dual-tranche bond sale, shaking off concerns about the struggling bond market in the country and proving that quality credits can still get deals done.

Concerns around some Indonesian and Chinese credits, including Delta Merlin Dunia Textile and China Minsheng Investment Group, have put a dent in investor sentiment in Asia with bonds underperforming in the secondary market.

Indonesian power company Perusahaan Listrik Negara (PLN) has launched a $1bn five year deal into syndication, with bank meetings set to kick off at the end of the month.

A subsidiary of Indonesian textile company Duniatex missed an interest payment on a $260m syndicated loan last week, causing the bond price of its sister company to collapse and bankers to wonder about the wider health of the sector. Pan Yue reports.