Govt to issue Rp2t in T-bills next month<\/p>\n
Urip Hudiono
\nThe Jakarta Post\/Jakarta<\/p>\n
The government plans to offer up to Rp 2 trillion (about US$215
\nmillion) in one-year treasury bills, or T-bills, next month,
\naccording to a finance ministry official.<\/p>\n
Director General of State Treasury Mulia Nasution said on
\nTuesday the auction of the short-term promissory notes would take
\nplace in April, after the planned sale of dollar-dominated
\noverseas bonds slated for later this month.<\/p>\n
\"We are planning at least four offerings of treasury bills
\nthroughout the year,\" he said, adding that the government hopes
\nto reap as much as Rp 2 trillion from each of the offerings.<\/p>\n
\"We will not be offering too many bills at first, probably the
\nsame as usual,\" he said.<\/p>\n
\"But if the market demand turns out to be good, we hope to
\nsell even more.\"<\/p>\n
Treasury bills are short-term promissory notes that mature in
\none, three or 12 months.<\/p>\n
The government has been offering both rupiah- and dollar-
\ndenominated bonds -- both of which mature within a year, to help
\nredeem maturing debts and help finance the budget deficit, which
\nis estimated to reach about 1 percent of gross domestic product
\n(GDP) this year.<\/p>\n
The government sold Rp 8 trillion worth of bonds in its two
\nfirst local bond offerings this year.<\/p>\n
Later this month, the government will offer between $1 billion
\nto $1.5 billion worth of bonds, having appointed Citigroup,
\nDeutsche Bank AG and UBS AG as the bonds' underwriters earlier
\nthis year.<\/p>\n
The introduction of treasury bills will complete the
\ngovernment's bond offerings and help expand the local bond market
\nas investors are likely to consider the bills more attractive
\nthan treasury bonds.<\/p>\n
The government plans to sell a total of Rp 43 trillion worth
\nof domestic bonds and bills this year. Last year, it sold Rp 32.5
\ntrillion worth of bonds, including $1 billion in global bonds.<\/p>\n
\"How many treasury bills we offer will be determined by how
\nmuch we get from our usual local bond and global bond offerings,\"
\nMulia said.<\/p>\n
Market analysts predict that government bond issues this year
\nwill do well, in part due to the country's steadily improving
\neconomy as reflected in the recent upgrading of its debt ratings.<\/p>\n
Global rating agency Moody's recently upgraded its outlook for
\nIndonesia's current B2 long-term local currency rating -- which
\nis still five levels below the investment grade -- to \"positive\"
\nfrom \"stable\".<\/p>\n
Fitch Ratings also raised Indonesia's long-term foreign and
\nlocal currency ratings to BB- from B+, and affirmed its short-
\nterm rating at B, both with positive outlooks.<\/p>\n
Standard and Poor's, meanwhile, upgraded Indonesia's long-term
\nforeign currency to B+ from a B and the local currency rating to
\nBB from B+, all with positive outlooks.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-issue-rp2t-in-t-bills-next-month-1447893297",
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"sponsor": "Okusi Associates",
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