Indonesia

There is little doubt that the Republic of Indonesia is one of the most recognisable Asian borrowers in the international debt market, approaching investors with regular, sensibly-priced issues that have won it plaudits from fund managers and bankers alike. But despite its steadfast reputation among the global investor base, the country cannot afford to sit back.

The rise of the Republic of Indonesia in the international bond market has been spectacular over the past few years, with a series of high profile transactions that not only showcased the borrower’s attractiveness to investors, but also its willingness to innovate. The prospect of a ratings upgrade just around the corner should help continue momentum, but the economic picture is mixed, writes Rev Hui.

The Republic of Indonesia printed its second ever bond in euros on July 23 as it continues to expand its funding sources in a bid to diversify away from dollars. While the sovereign made a conscious decision to pay up to achieve its aim, market participants are split whether the cost of diversification was worth it.

Indonesian vehicle financing firm BFI Finance has wound up its three year loan at an increased size of $105m after 18 banks piled in. The deal was launched at $75m on May 11 and originally included a greenshoe that could take it up to $100m.

The Republic of Indonesia returned to the euro market on July 23 as it looks to extend its curve with a new 10 year offering.

In this round-up, Hong Kong deposits rose in April, but cross-border RMB trade settlement fell, Macau announced its March deposit figures, ICBC opened two new offshore branches in Montreal and Riyadh, RMB clearing in South Korea has reached a daily average of Rmb25bn, and Japanese bank MUFG helped Brazilian clients settle trade with China in RMB.

Poultry feed producer Charoen Pokphand (CP) Indonesia’s $350m dual currency loan, which comes with a $50m greenshoe, has entered general syndication.