Corporate may issue samurai bonds under JBIC

The Japan Bank for International Cooperation (JBIC) will expand its guarantee for samurai bonds issued by Indonesia, which may include corporate-issued bonds, a Finance Ministry official said.

"Market access will be more general ... There will be a different scheme ... It's in preliminary talks as to who will be guaranteed, [and the] amount. I heard it will expanded but the details haven't been finalized," Rahmat Waluyanto, director general of debt management at the ministry, said Monday.

He refused to elaborate further whether it would include corporate bonds. "It will be announced by JBIC," he said.

The government issued 35 billion yen ( US$382.40 million) of samurai bonds last year under the guarantee of JBIC to help Indonesia plug its budget deficit amid the global financial crisis. Samurai bonds can be issued only by those having investment grade.

JBIC has guaranteed the issuance of samurai bonds by the Indonesian government up to $1.5 billion until 2010, which means Indonesia can issue up to around $1.1 billion this year.

The government plans to issue samurai bonds this year but the amount and the time have not yet been disclosed, said Rahmat.