International Bonds: US$1.5 Billion Issued
Friday, 09 February, 2007 | 11:34 WIB

TEMPO Interactive, Jakarta: The government issued international bonds amounting to US$1.5 billion. The debts, which were put on the market on February 7, 2007 will fall due on February 17, 2037. The coupon rate is 6.625 percent.

In his press statement, Head of Public Relations at the Finance Department, Samsuar Said, said the turnover at the time of issuing was 6.75. The bonds with a 30-year term was 189.3 base points against the United States’ bonds.

The Standard & Poors International Ratings, LLC and Fitch Ratings --BB--- level to the bonds while Moodys Investor Services gave a B1.

Samsuar also said the bonds to be distributed in Asia amount to 38 percent, United States 37 percent and the remainder in Europe, 25 percent. As the transaction joint lead managers, Citrigroup, Deutche Bank Securities and UBS Investment Bank.

Bank International Indonesia’s economist, Ferry Latuhihin, is of the opinion that this other currency debt securities will be quickly absorbed by the market. This is because the investor’s perception of Indonesian macro-economic growth has improved. “The bonds will be absorbed by markets abroad quickly, with them lasting up to 30 years,” Ferry told Tempo yesterday. In addition, state debt securities management has a good reputation among foreign investors.

Anton Aprianto and Dewi Rina