Bahana launches Asian Bond Fund

Bahana launches Asian Bond Fund

JAKARTA: Investment manager Bahana TCW introduced on Tuesday a local edition of the Asian Bond Fund (ABF), a regional securities product that the Executive's Meeting of East Asia and Pacific Central Banks (EMEAP) launched last week.

The rupiah-denominated mutual fund investment in mostly government and state-owned enterprise bonds, will be part of EMEAP's second offering of a US$2 billion ABF, after its maiden dollar-denominated ABF issuance in 2003.

"We expect the bonds to help develop Indonesia's bond market by attracting local as well foreign investors," Bahana TCW president Dwina S. Wijaya said.

The initial offering of some 25 billion of the Indonesian ABF notes will be exclusive to EMEAP members, but a second offering in June will be open for the public, particularly for institutional investors buying a minimum of Rp 100 million (some $10,000) of the bonds. -- JP