Indonesia raises US$1.3 billion in its largest Samurai bond sale

INDONESIA raised 200 billion yen (S$1.72 billion) in its largest sale of Japanese yen-denominated bonds, the finance ministry said in a statement on Friday (May 17).

Indonesia, a regular issuer of Samurai bonds, sold 50 billion yen of three-year notes with a 0.99 per cent coupon, 88 billion yen of five-year notes with a 1.33 per cent coupon, 17.7 billion yen of seven-year notes with a 1.57 per cent coupon, and 19.3 billion yen of 10-year notes at with a 1.91 per cent coupon.

It also raised 25 billion yen through the sale of three “blue bonds”, made up of seven-year notes with a 1.57 per cent coupon, 10-year notes with a 1.91 per cent coupon and 20-year notes with a 2.55 per cent coupon.

Proceeds from the bonds will be used to finance this year’s budget deficit, while proceeds of the blue bonds are specifically for maritime-related projects, the ministry said.

Indonesia typically offers bonds in US dollars, euro and yen every year. Last May, the country raised 104.8 billion yen, equivalent to US$776 million at that time, from a Samurai bond sale with three- to 10-year maturities. REUTERS