JAKARTA - Indonesia HAS raised $3.5 billion in its second sovereign dollar bond sale of 2015, preempting a likely increase in U.S. borrowing costs. The government sold $2.25 billion of 10-year notes at 4.8 percent and $1.25 billion of 30-year securities at 6 percent, Scenaider Siahaan, a director at the Finance Ministry’s budget financing and risk management office, was quoted by Bloomberg as saying on Wednesday. Bids totaled $8.1 billion, he said.
The yields were higher than in the secondary market where dollar bonds due January 2025 yielded 4.56 percent as of 8:09 a.m. in Jakarta and those due January 2045 yielded 5.69 percent, the news agency reported. The government will increase the share of foreign-currency debt to 30 percent of total issuance in 2016 from 24 percent this year to guard against potential increases in local-currency yields as the U.S. raises rates. (*)