The government of Indonesia announced has released US Dollar denominated bond worth of US$3 Billion and EUR1 Billion ($1.23 billion) - Photo: Special

JAKARTA (TheInsiderStories) – The government of Indonesia has released US Dollar denominated bond worth of US$3 Billion and EUR1 Billion ($1.23 billion), ministry of finance announced on Wednesday (01/06). The bond have maturity 10, 12, 30, and 50 years of tenure.

The US Dollar tranches worth of $1.25 billion with tenure 10 years priced at 1.900 percent, 3.100 percent for the 30-years notes worth of $1.25 billion and the rest of $500 million with price 3.400 and have 50-years period. While. a 12-years Euro tranche with priced MS+135 basis points.

“Net proceeds will be used for the general purposes of the Republic, including its COVID-19 relief efforts. The Notes are expected to be rated Baa2 by Moody’s, BBB by Standard & Poor’s, and BBB by Fitch and will be listed on Singapore Exchange Securities Trading Limited and on Frankfurt Stock Exchange,” wrote the statement.

The issuances helped by Citigroup, DBS Bank Ltd., Deutsche Bank, Mandiri Securities and Standard Chartered Bank served as joint book-runners. While PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM) were Co-managers.

Indonesian government back into the global bond market in July, 2020 by issued Samurai bonds JPY50.7 billion ($490.80 million) with coupon rate 1.13 percent due to 2023, JPY24.3 billion with coupon 1.35 percent mature 2025, JPY10.1 billion with rate 1.48 percent due 2027, JPY13.4 billion with coupon 1.59 percent mature 2030, and JPY1.5 billion with rate 1.80 percent and due 2040.

In May, by offered US Dollar-denominated trust certificates (SUKUK) on May of 2020. Moody’s Investors Service has assigned Baa2 backed senior unsecured ratings to the planned global SUKUK to be issued by the government under its existing $25 billion trust certificate issuance program.

A month before, the government has issued three series of global bonds with values of $4.3 billion, the largest amount in the history of Indonesian global bond issuances. The ministry of finance released Series RI1030 with a 10.5-years tenure with a nominal values of $1.65 billion and yields 3.9 percent.

Then, Series RI1050 has a 30.5-years tenure with worth of $1.65 billion and yield 4.25 percent. Third, Series RI0470 has a tenure of 50 years with values of $1 billion and a yield of 4.5 percent. These three series of global bonds issued received Baa2 ratings from Moody’s, BBB from Standard & Poor’s, and BBB from Fitch, and were listed on the Singapore Stock Exchange and Frankfurt Stock Exchange.

Finance minister Sri Mulyani Indrawati revealed, beside from the bond issuances, the budget deficit and other spending will finances from the surplus budget Rp70.46 trillion, endowment funds, public service agencies, private placements from state-owned enterprises, Indonesia Deposit Insurances, Hajj Fund, others, as well as multilateral loans up to $8 billion.

US$1: EUR0.81, JPY103.30

Written by Staff Editor, Email: theinsiderstories@gmail.com