Indonesia Sells $2.5 Billion Global Bonds to Yield 5.10%

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

Categories: Indonesia

1 reply

  1. Those who devour interest do not rise except as rises one whom Satan has smitten with insanity. That is because they say: ‘Trade also is like interest;’ whereas Allah has made trade lawful and made interest unlawful. So he to whom an admonition comes from his Lord and he desists, then will that which he received in the past be his; and his affair is with Allah. And those who revert to it, they are the inmates of the Fire; therein shall they abide.
    Allah will abolish interest and will cause charity to increase. And Allah loves not anyone who is a confirmed disbeliever and an archsinner.
    Surely, those who believe and do good deeds, and observe Prayer and pay the Zakat, shall have their reward from their Lord, and no fear shall come on them, nor shall they grieve.
    O ye who believe! fear Allah and relinquish what remains of interest, if you are believers.
    But if you do it not, then beware of war from Allah and His Messenger; and if you repent, then you shall have your original sums; thus you shall not wrong, nor shall you be wronged.
    (Al Quran 2:275-280)

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