Kawasan Industri bond builds on sector turnaround

Indonesian property developer, PT Kawasan Industri Jababeka KIJA, returned to the international bond markets on Wednesday, completing the new money component of an exchange offer and consent solicitation it had launched on September 13.

The group appears to have timed the liability management exercise well given the strong performance of Indonesian high yield bonds since their year-to-date lows in February. 

Since the group announced the exchange offer for its outstanding $260 million 7.5% September 2019 bonds, they have outperformed close comparables such as PT Lippo Karawaci, which was itself last in the market in early August. 

At announcement, the 2019...