November 19, 2015 / 8:20 AM / 4 years ago

Indonesia hires four for global bond offering

HONG KONG, Nov 19 (IFR) - The Republic of Indonesia has appointed Bank of America Merrill Lynch, CIMB, Citigroup and HSBC as bookrunners for an upcoming US dollar bond offering that could raise as much as $4 billion.

The size and timing of the issue are yet to be decided, but the country’s ministry of finance is looking for a big offering as it looks to fund a widening budget deficit.

“More is better. It’s more efficient for us. Hopefully $4 billion,” Scenaider C.H. Siahaan, director of debt strategy and porfolio at the Indonesian finance ministry’s debt management department, told IFR.

The government is planning to borrow around Rp150trn (US$11bn) from global funding markets in 2016, which accounts for up to 30% of its total government borrowing, Siahaan said.

Indonesia has already issued overseas bonds totalling $8.2 billion in dollars, euros and yen this year.

Indonesia is expected to run a fiscal deficit equivalent to 2.59 percent of gross domestic product this year, a finance ministry official told Reuters this month. (Reporting By Frances Yoon; Editing By Steve Garton)

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