Junk bond

Indonesian retailer tests waters with junk bond

Other Asian companies in need of cash will watch the performance of Multipolar’s high-yield bond closely to see if the investor appetite for riskier instruments is returning.
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Multipolar owns businesses such as Matahari, a department store, and a chain of supermarkets
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<div style="text-align: left;"> Multipolar owns businesses such as Matahari, a department store, and a chain of supermarkets </div>

Indonesian retailer Multipolar sold a $200 million junk bond on Friday, making it one of only a handful of Asian companies to brave the volatile markets since the US Federal Reserve signaled it would start to withdraw stimulus.

Multipolar priced its five-year high-yield bond at 9.75%. It follows South Korea’s MagnaChip Semiconductor, which sold $224 million worth of high-yield bonds on July 15.

The deals are a sign that investors’ appetite for riskier financial instruments may be returning after the Federal Reserve clarified it would not withdraw its monetary stimulus before US economic growth strengthens.

Other Asian companies will closely watch the...

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