BII plans $200m bond sale
BII plans $200m bond sale
PT Bank Internasional Indonesia, the nation's sixth-largest lender, said it may sell as much as US$200 million of bonds, its first overseas debt offering, to raise funds for investment.
The timing of the sale, targeted for next year, depends on approval from the central bank, Sukatmo Padmosukarso, the bank's corporate secretary, said in an interview in Jakarta.
The lender has "yet to decide" on the exact amount of debt it plans to sell, he said.
Bank Internasional, PT Mitra Global Telekomunikasi and other Indonesian companies are selling bonds to fund expansion after a presidential election last month calmed concern about political instability.
Indonesia's economy is forecast by the government to expand 4.8 percent this year, the fastest pace in four years. Mitra Global sold $270 million of bonds on Sept. 8.
The Jakarta-based lender, which is controlled by Kookmin Bank, South Korea's largest lender, plans to hire Barclays Plc and UBS AG to help it sell the bonds, bankers familiar with the situation said on Sept. 27.
Barclays and UBS were verbally informed they would be awarded the business, said the bankers, who didn't want to be identified.
Bank Internasional may use the proceeds of the debt sale to help fund the acquisition of as much as 75 percent of PT Wahana Ottomitra Multiartha, which specializes in financing motorcycle purchases.
Bank Internasional signed a "conditional" agreement to buy a stake in Wahana, President Henry Ho said on Sept. 16.
The lowest interest rates in six years have spurred consumer spending, which accounts for 70 percent of Indonesia's economy, and helped PT Astra Internasional, the nation's largest auto distributor, and other dealers increase sales.
The yield on Indonesia's 10-year dollar bonds maturing in 2014 narrowed to 7.04 percent, or 2.9 percentage points more than similar maturity U.S. Treasuries, according to Deutsche Bank prices as of 1:09 p.m.
The yield rose to as much as 9.23 percent on June 3. The 10- year Treasury is yielding 4.111 percent. -- Bloomberg