Indonesia’s state-owned bank BNI and port operator Pelindo IV are seeking to finance expansion projects by issuing multi-million-dollar bonds, according to news agency Antara.
Bank Negara Indonesia to release $150m bonds
Indonesian state-owned bank Bank Negara Indonesia (BNI) said it will release convertible bonds worth Rp2 trillion ($150 million) in the second half of 2018 to strengthen its capital and mitigate systemic impact in the event of an economic crisis.
Additionally, the convertible bond will also be used in anticipation of the bank’s funding needs for infrastructure financing, according to BNI Finance Director Rico Rizal Budidarmo.
BNI is the fourth largest bank by assets in Indonesia. As a bond issuer, the bank collected assets of around Rp700 trillion by the end of last year.
Pelindo IV eyes $375m bonds for new port development
State port operator PT Pelabuhan Indonesia IV (Pelindo IV) announced plans to issue bonds worth about Rp5 trillion ($375 million) to finance a new port project development.
The bond issuance will finance the acceleration of Makassar New Port (MNP) development, which has now reached 58 per cent, according to the Antara report.
The port project is one of the national strategic projects of President Joko Widodo’s flagship government in eastern Indonesia.
In addition to MNP, Pelindo IV is also increasing the capacity of Bitung Container Terminal, as an international hub port, and Kendari New Port.