Indonesia

In a country where bank borrowing forms a large part of infrastructure project financing, much needs to be done to make Indonesia’s local currency bond market the go-to place for project developers. With no first mover advantage and costs and documentation proving tricky, there is plenty holding back issuers from selling Indonesia’s first rupiah infrastructure bond. Asiamoney talked to a group of leading market participants about the challenges and potential of the southeast Asian country’s long-term project financing bond market.

The Indonesia Stock Exchange (IDX) has opened an online information service to educate private companies on the benefits of listing, according to a document from the bourse.

Oil India is understood to have zeroed in on three banks to arrange new debt, following a request for proposals for a $650m loan with a $200m greenshoe option.

Agro-industrial company Royal Industries Indonesia has failed to pay the first principal instalment on a $380m loan borrowed in June 2015. Although the incident was driven by circumstances unique to the borrower, market observers reckoned banks would now be more wary of lending to smaller, privately-held firms from the country. Shruti Chaturvedi reports.

Royal Industries Indonesia is understood to have failed to repay the first principal installment on a $380m loan raised in 2015.

Indonesian lender Bank Tabungan Pensiunan Nasional, which is backed by Sumitomo Mitsui Banking Corp, is seeking $155m from the syndicated loan market.

A power plant construction firm from Indonesia and an equipment and infrastructure finance company from India are raising debt worth a collective $125m.

Pricing on a $1.5bn borrowing for Indonesian state-owned oil company Pertamina has become a talking point among loans bankers. Some believe that the loan will not have an easy time in syndication as the cost of funds at Japanese and Taiwanese lenders creeps up, writes Shruti Chaturvedi.

Waskita Beton Precast is poised to raise up to Rph5.27tr ($402.63m) in what could be Indonesia’s largest IPO in five years, with the firm launching a two week roadshow on Wednesday.

A $725m loan for Indonesia Eximbank has been allocated, with lenders that committed only to the shorter, three year tranche, experiencing a bigger scaleback than those that opted for the five year.

There was no sign of a summer slowdown in Asia’s bond market last week with five deals pricing in one day. But that momentum has not carried over into this week as a public holiday takes out some of the heat. But any pause is likely to be temporary, say bankers.

Indonesia’s Pertamina is expected to launch its long awaited $1.5bn five year financing into general syndication this week, punctuating a quiet period for the southeast Asian loan market.