Dubai road show runs well, says Minister of Finance Boediono
Dubai road show runs well, says Minister of Finance Boediono
The Jakarta Post, Jakarta
The government claims that its road show in Dubai last week --
aimed at testing investor interest on a planned international
bond issue next year -- has been a success, with the government
presentation having drawn the interest of some 30 global
investors.
Minister of Finance Boediono told reporters on Tuesday that
the investors included fund managers, investment bankers and
people from other financial institutions -- with "all showing
high-level enthusiasm for the plan."
Boediono refused to name the investors.
Dubai is currently hosting the annual meeting of the World
Bank and International Monetary Fund (IMF). While attending the
forum, the government used it also to see what the international
community had to say about the country's bond issue plan.
After Dubai, the government and central bank officials will
continue the road show to other major financial centers in the
world, including London, Singapore and New York.
The bond issue plan is stated in the 2004 state budget draft,
which totals Rp 3.48 trillion (about US$400 million), as part of
foreign financing sources to help plug the estimated Rp 24.9
trillion in budget deficit.
The government is in dire need of extra financing sources
after it decided not to extend the current IMF economic bailout
program, a move which deprives the country of access to foreign
debt rescheduling facilities from the Paris Club of creditor
nations.
This scheme will come along with other options, including
optimizing potential revenues from both domestic and other
foreign sources, mostly loans.
However, under the draft -- which has already been submitted
to the House of Representatives -- domestic sources still make up
the lion's share in the deficit financing, totaling Rp 39.8
trillion.
The plans will be the country's first international bonds
issue since the financial crisis crippled the economy in 1997-
1998. Some $400 million worth of Yankee bonds were issued in
1996.
Elsewhere, Boediono also said there was at least four foreign
securities companies that had shown an interest in becoming the
advisors of the bond issue.