Indonesia Eximbank Plans to Raise Rp 4t in Bonds in First Half of 2015


JANUARY 08, 2015

Jakarta. Indonesia Eximbank, the country’s export financing agency, has plans to raise up to Rp 4 trillion ($315 million) by issuing bonds in the first half of this year to help finance its export activities, top executives at the agency said on Thursday.

The bond sale is part of a larger target to raise up to Rp 8 trillion by the end of this year.

Eximbank said in a filing to the Indonesian Stock Exchange (IDX) on Thursday that it issued a total of Rp 1.5 trillion in bonds in 2014. The bonds were listed on the IDX on Wednesday for trading in the secondary markets.

Eximbank executive director Ngalim Sawega said proceeds from the bond sale would be used to help support financing activities.

Eximbank expects to book total outstanding financing this year of between Rp 62 trillion and Rp 65 trillion, Ngalim said, up from last year’s outstanding financing income of Rp 50 trillion.

Eximbank, a special financial institution that was established under specific laws, helps provide import/export financing and assists in financing overseas construction projects, including support for state-owned construction company Wijaya Karya, which has ongoing building projects in Myanmar.

Last year, about 58 percent of the agency’s financing was dollar-denominated, while the rest was in rupiah.

Eximbank had total assets of Rp 60 trillion and total capital of Rp 10 trillion as of the end of 2014.

Ngalim said the government had injected a total of Rp 1 trillion to help strengthen the agency’s capital base on Dec. 30.

This year, Ngalim said, the government plans to inject more capital, which could help boost the agency’s financing capability.