Indonesia attracted offers almost three times the value of the $2.5 billion dollar-denominated bonds it sold on Thursday, Finance Minister Agus Martowardojo said.
“We got offers totaling $6.9 billion but we granted only $2.5 billion,” the finance minister said, pointing out that this reflected the confidence of foreign investors in the country’s economic outlook and prudent debt management policy.
Indonesia sold the 10-year bond with a coupon of 4.875 percent to yield at 5.1 percent. "The coupon is 100 bps lower than what we offer last year. This is a good development for the future," Agus said.
Despite the strong interest, he said the government had no plans for another dollar-denominated bond this year, but plans to issue global sukuk (Islamic bonds) in the second half of the year. (full story)
“We got offers totaling $6.9 billion but we granted only $2.5 billion,” the finance minister said, pointing out that this reflected the confidence of foreign investors in the country’s economic outlook and prudent debt management policy.
Indonesia sold the 10-year bond with a coupon of 4.875 percent to yield at 5.1 percent. "The coupon is 100 bps lower than what we offer last year. This is a good development for the future," Agus said.
Despite the strong interest, he said the government had no plans for another dollar-denominated bond this year, but plans to issue global sukuk (Islamic bonds) in the second half of the year. (full story)
The bond was Indonesia’s first debt sale this year as it seeks overseas funds to help plug a budget deficit forecast to reach Rp 124.7 trillion ($14.5 billion), or 1.7 percent of gross domestic product, this year.
The Finance Ministry said US investors accounted for 49 percent of the bond sales, European investors 22 percent and Asian investors 29 percent.
“This shows that investor appetite for Indonesia is still huge, thanks to strong growth and manageable debt,” said Helmi Arman, an economist from Bank Danamon. “Moreover, Western countries have seen their ratings drop due to soaring debt.”
In January, Moody’s Investor Service upgraded Indonesia’s rating to one level below investment grade at Ba1. In February, Fitch Ratings upgraded Indonesia to BB+, while Standard & Poor’s did likewise in March.
Source : http://www.thejakartaglobe.com/home/minister-hails-indonesias-successful-sale-of-dollar-bonds/437850 - April 28, 2011
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