Indonesian firms eye bonds as loans come up short

By Rashmi Kumar, Shruti Chaturvedi
26 Jun 2014

Indonesian port operator Pelabuhan Indonesia III (Pelindo III) is considering shelving a potential loan in favour of tapping the offshore dollar bond market, while Perusahaan Gas Negara (PGN) plans to reduce the size of its loan after a highly successful bond in May. Despite these deals slipping from their grasp, loans bankers are taking comfort in the fact there are plenty of smaller companies that will still need bank financing, write Shruti Chaturvedi and Rashmi Kumar.

Gas company PGN mandated five banks in early April for a $1.5bn five year loan, which was expected to hit syndication in the middle of the year. But this week news emerged that PGN was considering cutting the size of its fundraising to a smaller, ...

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