Danamon to delay bond sale<\/p>\n
JAKARTA: PT Bank Danamon, Indonesia's fifth-largest lender by
\nassets, may delay the planned sale of rupiah-denominated bonds to
\nthe end of next year because of an increase in borrowing costs.<\/p>\n
The bank may also reduce the size of the sale to as little as
\nRp 1.5 trillion (US$153 million) from Rp 2.5 trillion, Lam Kun
\nKin, head of treasury and capital markets at Bank Danamon, said
\nin Jakarta on Tuesday.<\/p>\n
\"We will have to delay it,\" said Lam. \"We cannot do it this
\nyear because of the high interest rates.\"<\/p>\n
The central bank, Bank Indonesia, raised its benchmark
\ninterest rate for the sixth time in four months on Dec. 6 to rein
\nin inflation after the government raised fuel prices in early
\nOctober. The rate, used as a reference for bill sales, was raised
\nby half a percentage point to 12.75 percent.<\/p>\n
Bank Danamon, 65 percent controlled by Deutsche Bank AG and
\nSingapore's state-run investment company Temasek Holdings Pte,
\nfirst delayed the sale on April 14, citing rising local borrowing
\ncosts. On Aug. 1, Chief Financial Officer Vera Eve Lim said the
\nlender might go ahead with the sale in either September or early
\nnext year.<\/p>\n
The lender will have to reappoint investment banks to help
\nsell the bonds after previous mandates expired. PT Danareksa
\nSekuritas, PT DBS Vickers Securities Indonesia and PT Trimegah
\nSecurities had been hired to manage the sale.<\/p>\n
Standard & Poor's ranks Bank Danamon's long-term rupiah debt
\nBB-, three levels below investment grade. -- Bloomberg<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/danamon-to-delay-bond-sale-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}