The Indonesian government will sell global bonds worth US$ 3 billion in the New York Stock Exchange on Tuesday as part of the country's Medium-Term Notes amounting to US$ 20 billion.
The US dollar-denominated bonds are divided into two series, namely series RI0423 worth US$ 1.5 billion and series RI0443 worth US$ 1.5 billion, the Directorate General of Debt Management at the Finance Ministry said in a press statement released on Tuesday.
The series RI0423 bonds due on April 15, 2023 will be issued at a coupon of 3.38 percent and a yield of 3.50 percent. The 10-year bonds will carry a price of 98.95 percent.
Meanwhile, the series RI0443 bonds due on April 15, 2043 will be issued at a coupon of 4.63 percent, and a yield of 4.75 percent. The 30-year bonds will carry a price of 98.01 percent.
The statement said the total order book for the series RI0423 and RI0443 bonds reaches US$ 12.50 billion, meaning that the bonds are 4.2 times oversubscribed.
It said 20 percent of the series RI0423 bonds will be allotted to European investors, 50 percent to U.S. investors, 17 percent to Asian investors (excluding Indonesia), and 13 percent to Indonesian investors.
Based on the types of investors, 68 percent of bids for the series RI0423 comes from asset managers, 18 percent from banks, 11 percent from insurance companies and pension funds and 3 percent from the private banking.
Meanwhile, 56 percent of the series RI0443 bonds will be allotted to U.S. investors, 27 percent to European investors, 13 percent to Asian investors (excluding Indonesia), and 4 percent to Indonesian investors.
Based on the types of investors, 81 percent of bids for the series RI0443 comes from asset managers, 8 percent from banks, 9 percent from insurance companies and pension funds and 2 percent from the private banking.
Indonesia has obtained BBB-(stable) rating from Fitch, BB+ (positive) from S & P and Baa3 (stable) from Moody`s. Joint lead managers and joint book-runners of the bond sales are Deutsche Bank AG, JP Morgan Securities plc and Standard Chartered Bank, acting as co-Managers are PT Mandiri Securities and PT Danareksa Securities.