Government launches first 2005 bond issue<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government launched its first bond issue for the year,
\nselling on Tuesday Rp 5 trillion (US$545 million) of a 10-year
\nbond, more than twice the amount initially planned due to a
\nstrong response from investors.<\/p>\n
Mulia Nasution, director general of Treasury at the ministry
\nof finance, told reporters that the bonds, which were priced to
\nyield 10.12 percent, had received bids worth Rp 12.4 trillion.<\/p>\n
\"The interest to buy the government's bonds was good so that
\nwe could increase the size of the bonds from the initial target,\"
\nhe said.<\/p>\n
The bonds will mature on June 15, 2015.<\/p>\n
Bloomberg data says that Moody's has a rating of B2, five
\nlevels below investment grade, for Indonesia long-term local
\ncurrency debt, while Standard & Poor's rates the rupiah debt BB,
\ntwo levels below investment grade.<\/p>\n
Tuesday's issue was the first of the total Rp 43 trillion in
\nbonds planned to be sold throughout the year, including sovereign
\ndollar-dominated bonds.<\/p>\n
The proceeds of the sales would in part go to help redeem
\nmaturing debts and help finance the state budget deficit, which
\nfor 2005 is estimated to reach about 1 percent of the gross
\ndomestic products (GDP).<\/p>\n
Last year, the government sold Rp 32.5 trillion in bonds,
\nincluding $1 billion of global bond last March.<\/p>\n
Mulia did not say when the next issue would take place.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-launches-first-2005-bond-issue-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }