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.
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. Read more