ADB once applied for permit to issue bonds in Indonesia

Jakarta (ANTARA News) - The Asian Development Bank (ADB) once applied to the Finance Ministry for a permit to issue local currency bonds in Indonesia, an official said.

"They (ADB) once applied for a permit to issue local currency bonds but until now they have yet to issue the bonds," the ministry`s director general of debt management, Rahmat Waluyanto, said on Friday.

Waluyanto said the ministry had no problem with the bank`s application. On the contrary, the issuance of such bonds would benefit Indonesia.

"We will much benefit from it, meaning that if the ADB which has high rating pushes through with the bond issuance investors will consider Indonesia a good place of investment," he said.

Asked if the finance minister had approved the bank`s application, he reiterated that in principle, the minister had no problem with it.

The issuance of ADB bonds would have no impact on the bonds issued by the Indonesian government so far, he said.

"The amount of ADB bonds is small so it will have no impact," he said.

Early this month, the Manila-based bank issued dollar-denominated global bonds worth US$1 billion with a maturity of 10 years. The bank will use proceeds from the bond issuance as a source of funds.

The bonds which carry a coupon of 5.25 percent payable every semester will mature on June 12, 2017.