ADB mulls maiden rupiah issue


The Asian Development Bank is considering an offering of maiden bonds denominated in Indonesian rupiah.

"ADB has received multiple approaches from potential investors and underwriters for a debut IDR bond issue, indicating favourable demand conditions," said Jonathan Grosvenor, adviser, office of the treasurer, and head, treasury client solutions, at ADB.

ADB is considering issuing rupiah bonds for the first time as local currency funding is integral to its borrowing programme.

"The ability for ADB to source local currency funding is a key risk mitigator for our borrowers, while also serving to support local capital market development," Grosvenor said.

Until now, ADB has issued debt securities in more than 30 different currencies. "Overall, ADB has adopted a three dimensional strategy for local currency funding: deepen the liquidity pool with more volume, extend the maturity profile with longer dated issues and broaden the currency mix by accessing more markets."

Grosvenor clarified that any rupiah funding the ADB raised, be it onshore or offshore, would be put to work in the lender's loan operations in Indonesia.


This article appears in: Fundamental Analysis , Stocks , Banking and Loans , US Markets , Bonds

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