Indonesia sells $3 billion dollar bonds at record-low yields | Sector data
(The Insider Stories) — Indonesia has sold a two-tranche $3 billion dollar bond at record low yields, with demand of around US$12 billion reflecting global investor confidence in the country’s medium- and long-term debt.
Finance minister Agus Martowardojo said Indonesia priced a $1.5 billion 10-year offering at 98.953 to yield 176.3 basis points over comparable Treasurys, or 3.500%. It also priced a $1.5 billion 30-year tranche at 98.012 to yield 182.2 basis points over Treasurys, or 4.750%.
The yields on the latest deal are substantially lower than Indonesia’s previous dollar offering a year ago, when it paid 3.85% on its 10-year tranche and 4.95% on its 30-year tranche.
The bonds have investment-grade ratings from Fitch Ratings and Moody’s Investors Service. Deutsche Bank, JP Morgan and Standard Chartered were joint bookrunners, while Mandiri and Danareksa were co-managers on the deal, which was available to qualified institutional buyers in the U.S.
