Govt may up 2004 global bond issue<\/p>\n
Dow Jones, Jakarta<\/p>\n
The government planned to sell up to US$600 million in global
\nbonds next year, more than initially planned due to warm investor
\nresponse during a recent international roadshow, a senior
\ngovernment official said on Monday.<\/p>\n
Government officials in October met with investors in Dubai,
\nLondon and New York to gauge appetite for a sovereign bond from
\nIndonesia. which has not tapped global markets since the 1997-
\n1998 Asian financial crisis.<\/p>\n
The strong demand at this early stage has pushed the
\ngovernment to consider selling $600 million in bonds, up from an
\nearlier plan to issue $400 million, Director General of Financial
\nInstitutions at the Ministry of Finance Darmin Nasution said.<\/p>\n
The country needs to raise funds from private investors both
\noverseas and at home next year to compensate for funding it will
\nlose when its International Monetary Fund lending program runs
\nout at the end of this year.<\/p>\n
Apart from global bonds, the government hopes to sell domestic
\nbonds, and private a number of state-owned companies.<\/p>\n
The government plans to name financial advisers for the
\ninternational bond deal later this month.<\/p>\n
A government source told Dow Jones last month that 20
\ninternational investment banks, including BNP Paribas, Citigroup,
\nJP Morgan, Deutsche Bank, Credit Suisse First Boston, UBS AG and
\nING Barings, are vying for the deal.<\/p>\n
The government plans to hold another round of roadshows in
\nSingapore, Hongkong and Japan before the year-end.<\/p>\n
Moody's Investors Service last month upgraded Indonesia's
\nsovereign rating by one notch to B2, while Standard & Poor's also
\nin the same month raised the country's rating by one notch to B,
\nwhich are expected to help the sovereign bond issue.<\/p>",
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"sponsor": "Okusi Associates",
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