Citi Expects Indonesia Firms to Tap Dollar Debt Despite Moody’s

Citigroup Inc. expects Indonesian corporates to push ahead with dollar bond sales this year, despite a broader blow to sentiment after Moody’s Ratings lowered its outlook on the government’s credit score earlier this month.

“What I can tell you is when I meet the companies, because I was just there for a trip recently, they continue to be fully invested in their growth plans,” said Nitesh Dugar, head of debt capital markets for South and Southeast Asia at the US bank. Dugar said he expects Indonesian borrowers to lead a 10% to 15% increase in bond issuance from Southeast Asia in dollars this year.