Indonesian state-run power utility's dollar bonds decline due to debt concerns, leading to wider spreads and higher refinancing costs.
Indonesian state-run power utility's dollar bonds decline the most in Asia due to debt concerns, pressuring local borrowers with $6bn in maturities to 2025. Average spreads of corporate and quasi-sovereign notes widen six basis points in June, driven by President-elect Prabowo Subianto's plans to raise the country's debt ratio. This leads to higher yield premiums on new bonds, impacting refinancing costs and external debt repayment challenges.
June 24, 2024
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