A lack of clarity over Indonesia’s new
hedging rules and issuance restrictions for high-yield bonds
could stall the country’s market according to the
region’s market participants.
The new hedging rules, released in October last year will come into
force on January 1 2016 for bonds and loans. They require
Indonesian corporate borrowers to hedge their foreign currency
liabilities with an Indonesian bank, and borrowers must be
rated higher than BB-.
Market participants were immediately concerned about what this could mean
for the country’s high-yield issuers. And further
rules issued in January have not calmed their fears.
Speaking at the IFLR Southeast Asia Forum...