Emissions of global bonds RI tenor only 10 years old
Finance March 8th, 2010
The Government of Indonesia to cancel plans global bond issue 30-year term, and the only debt issued bertenor 10 years.
According to Bloomberg sources, note the U.S. dollar-denominated debt that will be set based on the size or number. Benchmarks are usually worth at least U.S. $ 500 million.
Government explore global bonds worth U.S. $ 3 billion to U.S. $ 4 billion to finance its 2010 budget. Bond yield was estimated at 2.2% and 2.54% higher than debt securities with the same period published by the U.S. Treasury Department (U.S. Treasury).
Government of the Philippines and Turkey jointly issued dollar bonds worth U.S. $ 3.5 billion. Besides Indonesia, the government of Vietnam, Russia and Poland is also preparing the sale of dollar bonds in order to reap the benefits of debt reduction in borrowing costs in the U.S..
In the last week, the Philippine government bond yields set for 5.67%. Bonds that mature in 2020 were ranked BB-, as Indonesia dollar bonds. International debt rating agency Moody’s Investors Service earlier this week with a Ba2 rating to stable outlook for the global debt securities RI medium term.
The same debt ratings given when the government issued a letter RI RI debt worth U.S. $ 3 billion in February 2009, while Fitch Ratings provides ratings BB. Both are two levels below investment level. Instead, Standard & Poors rated BB-, three levels below investment level, which is equivalent to ranking Turkish acquisition.
A finance ministry official said the government has appointed Barclays Capital Plc, Citigroup Inc. and Credit Suisse Group AG as an underwriter of global bonds plan this RI.
