Indonesia to buy back US$1.16b in global bonds after tender offer

[JAKARTA] Indonesia has decided to buy back US$1.16 billion of global bonds after launching a tender offer for a repurchase for the first time, below an amount it indicated last week, the country's debt office said on Tuesday.

The South-east Asian country offered to repurchase a maximum US$1.25 billion of bonds maturing between 2022 to 2026 last week, using the proceeds from a new bond sale of 10-year and 40-year maturities.

Indonesia received a total of US$2.68 billion in instructions after the tender offer, but rejected some of them, without citing a reason, according to a statement from the finance ministry's debt office.

The offers it accepted were for the repurchase of bonds maturing between 2022 to 2024, it said.

The finance ministry's debt office said the country's inaugural "liability management exercise" was intended to extend the sovereign's debt maturity profile and reduce interest expense.

REUTERS

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