SUBSCRIBERS

Indonesia builders' US$ bonds outperform despite slowing economy

Their debt has returned an average 5.4% this year, while paper in other industries has lost 0.3%

Published Tue, Aug 4, 2015 · 09:50 PM
Share this article.

Singapore

WHAT could be nicer than your own beachside villa in Bali boasting a plunge pool, ocean views and personal chauffeur? For some, owning the debt that built it.

Dollar-denominated bonds of Indonesian developers, including those building luxury projects on its main resort island, are outperforming. Property firms have issued almost half of ex-government dollar notes outstanding in the nation as they bypass local lending curbs, Bloomberg-compiled data show. Their debt has returned an average 5.4 per cent this year, while paper in other industries has lost 0.3 per cent.

Bali's surf, volcanic-brick architecture and rice-paddy landscapes are high on wish lists of millionaires seeking beachfront havens, with top home prices rising 15 per cent last year. The island is a bright spot in an economy growing at the slowest pace since 200…

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Property

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here