JAKARTA (TheInsiderStories) – Indonesian government released dual-currency bonds with total amount US$3.1 billion for deficit financing in this year, said the finance ministry today (01/09). The notes will be listed at the Singapore Stock Exchange and the Frankfurt Stock Exchange.
Bond in US Dollar denominated have two series, RI0230 worth of $1.2 billion with a tenure of 10 years and RI0250 with a value of $800 million and have 30-years tenure. In addition, the ministry also released Eurobond with RIEUR0227 series worth of €1 billion ($1.1 billion) with a tenure seven years.
Joint Book-runners in this transaction are Citigroup, Deutsche Bank, Goldman Sachs, PT Mandiri Sekuritas, and Societe Generale. Acting as co-Managers are PT Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM). The bonds received a Baa2 rating from Moody’s, BBB from Standard & Poor’s, and BBB from Fitch.
Last year, Indonesian has sold the government bonds with total amount US$750 million in RI0929 series and €750 million in RIEUR0926 series. This is Indonesia’ third dual-currency bonds following 2017 and 2018.
Maturity for the US Dollar bond is 10 years and the Eurobond is 7 years. Coupon for the Eurobond is 1.45 percent while the US Dollar bond is 3.4 percent. Furthermore, the yield is set as 1.487 percent and 3.45 percent, respectively.
In the 2020 State Budget, the government set the deficit target Rp307,2 trillion or 1.76 of the Gross Domestic Products. The state revenues are set around Rp2,223 trillion ($158.78 billion) and expenditure Rp2,540.4 trillion.
Beside from debt, the government also prepared Rp10 trillion ($714.28 million) as a buffer for fiscal risks to overcome the budget deficit in 2020, rising 43 percent from this year’ allocation worth of Rp8 trillion.
Economic growth was set at 5.3 percent, inflation at 3.1 percent, the average exchange rate of Rp14,000 over the Greenback, and the state treasury coupon rate of 5.4 percent. Oil price at US$63 a barrel, oil lifting is estimated at around 755 thousand barrels and natural gas lifting at 1.19 million barrels.
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