BRI's $150m notes rated B3 by Moody's

JAKARTA: PT Bank Rakyat Indonesia (BRI), which the government plans to sell in the second half of this year, had $150 million notes it plans to sell rated B3, six levels below investment grade, by Moody's Investors Service.

"The rating reflects the subordinated status of the notes, strong government support for the bank, as well as BRI's unique and profitable franchise," Moody's said in the statement. The outlook for the rating is stable.

BRI and other Indonesian companies are selling bonds to capitalize on appetite for high-yield corporate debt as global interest rates are less attractive. One-month Indonesian central bank rupiah bills yielded 8.76 percent, compared with the U.S. Federal Reserve's 1 percent target rate for overnight lending.

The 10-year global bonds are expected to bolster the bank's capital and fund new loans through 472 branches across Indonesia. BRI has hired UBS Warburg to arrange the bond sale. -- Bloomberg