BNI to issue $300m in bonds soon

BNI to issue $300m in bonds soon

JAKARTA: PT Bank Negara Indonesia, the country's third-largest lender, plans to issue as much as US$300 million of dollar- denominated bonds in the fourth quarter, after delaying the offering because of higher borrowing costs.

The Jakarta-based lender plans to meet investors in Singapore, Hong Kong and Europe to gauge demand for the bond sale, Sigit Pramono, president director of Bank Negara Indonesia, said in an interview in Jakarta on Thursday.

"We have got approval from the central bank to sell the bonds," he said, without providing details.

Bank Negara planned to issue the bonds by the end of June, after twice delaying the sale last year. The delay came after the extra yield on emerging market debt widened on concern the Federal Reserve may raise U.S. interest rates more than forecast.

"We can't really go to the market this month, because the borrowing cost for us is still high," Pramono said. -- Bloomberg