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Renewables Push to Help Indonesia, India Debt Pipeline Grow

Bond sales from Indonesia and India denominated in the so-called G3 currencies -- the dollar, euro and yen.

Renewables Push to Help Indonesia, India Debt Pipeline Grow
Vehicles travel along a road as an elevated track for the Jakarta Mass Rapid Transit (MRT) rail system, right, stands under construction at dusk in Jakarta, Indonesia. (Photographer: Dimas Ardian/Bloomberg) 

(Bloomberg) -- The push to expand renewable-energy use along with infrastructure plans means more dollar bond offerings from companies in Indonesia and India next year.

That’s the view of Avinash Thakur, head of Asia Pacific debt origination at Barclays Capital Asia Ltd.

“There’s a lot of promise shown by Indonesia and India as both are growing at a decent pace, and with strong political mandates intend to spend on improving their infrastructure,” said Thakur. “There’s also a thrust on increasing renewable-energy capacity in these countries that brings a lot of companies from that business to the bond market.”

Bond sales from Indonesia and India denominated in the so-called G3 currencies -- the dollar, euro and yen -- have jumped to a four-year high of nearly 12% of the total issuance in Asia ex-Japan so far this year, according to data compiled by Bloomberg.

To contact the reporter on this story: Ameya Karve in Mumbai at akarve@bloomberg.net

To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Finbarr Flynn

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