Last bond issue draws strong response<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government auctioned its last bond issue of the year worth Rp
\n1.8 trillion (US$199 million) on Tuesday, with the proceeds to be
\nused for financing the state budget deficit, the Ministry of
\nFinance said.<\/p>\n
Treasury director general Mulia Nasution said the auction drew
\nbids amounting to Rp 7.3 trillion, making the issue four times
\noversubscribed.<\/p>\n
\"There were enormous offers, but we could not issue bonds more
\nthan the House has agreed on,\" Mulia said. Tuesday's issue had
\ncompleted the full-year bond issue target of Rp 32.3 trillion,
\nshe said. This included the $1 billion sovereign bond that was
\nsold in March.<\/p>\n
The buyers of the latest bond -- which carries a 10-percent
\ncoupon rate and was priced to yield 10.27 percent -- came mostly
\nfrom the banking sector and pension-fund firms, Mulia said.<\/p>\n
The government has been issuing bonds during the past year to
\nraise fresh funds to plug the budget deficit, whose financing
\nability has been heavily burdened by huge payments of debts --
\nmostly domestic ones.<\/p>\n
For this year, the budget deficit is expected to expand to 1.5
\npercent of gross domestic product, compared to original target of
\n1.3 percent of GDP, or about Rp 26.3 trillion, due to soaring
\nfuel subsidy costs.<\/p>\n
Moody's Investors Service rates Indonesia's local-currency
\ndebt at B2, while Standard & Poor's assigns a ranking of B+. Both
\nare junk, high-yield, or high-risk designations, according to
\nBloomberg.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/last-bond-issue-draws-strong-response-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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