Govt issues US$2 billion worth of bonds

Wednesday, 13 January 2010

ANTARA News Agency

The Indonesian government again issued state debentures in foreign denomination worth US$2 billion to help finance its national budget.

The director general of debt management of the ministry of finance, Rachmat Waluyanto, said here on Wednesday the issuance of the state debenture was part of the Global Medium-Term Notes (GMTN) program upsized on January 5, 2010.

"The offer includes one tranche worth US$2 billion for a 10-year period to be due in March 2020 with a six percent yield, a price of 99.044 percent and a coupon of 5.875 percent," he said adding that the transactions had been oversubscribed 2.3 times or Rp4.5 billion.

According to investor-based allocations the bidders include asset management (69 percent), banking (14 percent), insurance (11 pct) and retail or individual investors (6 pct). Participation of domestic investors meanwhile reached 7.0 percent based upon final orders.

The global bonds are rated Ba2 (stable) by Moody`s, BB- (positive) by S&P and BB (stable) by Fitch.

Barclays Capital, Citi and Credit Suisse meanwhile are the joint lead managers and joint book-runners of the transactions.

On Tuesday, the government also raised its debts to Rp7.5 trillion through the sale of four series of state debentures (SUN) through an auction.

The amount is bigger than the indicative amount set at Rp5 trillion before. Part of the proceeds will be used to finance the 2010 budget.

The debentures auctioned are SPN20110113 reached Rp1.1 trillion from Rp3.88 trillion worth of bids. The SUN will be matured on January 13, 2011.

The FR0027 meanwhile was sold at Rp1.45 trillion with bids reaching Rp3.7 trillion. The yield of this series is 8.18 percent while its maturity is June 15, 2015.

The FR0028 was sold Rp2.7 trillion with bids reaching Rp4.22 trillion and yield at 8.69 percent and maturity on July 15, 2018.

The FR0052 was sold at Rp2.25 trillion with bids reaching Rp3.07 trillion and yield at 10.51 percent and maturity on August 15, 2030.