Gov’t Issues US$4.3B Electronic Global Bonds

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Indonesian Minister of Finance Sri Mulyani has announced that Indonesian Government has issued electronic global bonds worth US$4.3 billion in three series, namely RI1030, RI1050, and RI0470.

The RI1030 is worth US$1.65 billion with a global yield of 3.9% and the tenure of 10.5 years which will be due on 15 October 2030.

The RI1050 with 30.5-years-tenure or due on 15 October 2050 is worth US$1.65 billion with a yield of 4.25%.

The RI0470 with 50-years-tenure is worth US$1 billion with a 50-year-tenure or due on 15 April 2070. This series is the first global bond with maturity of 50 years, also the longest in Indonesian history.

“The RI0470 is the new series that has never been issued before. The maturity is fifty years on 15 April 2070 and is worth US$1 billion with a yield of 4.5%,” Sri Mulyani explained.

The decision to issue a long-term tenure global bonds shows investor confidence in the track record of the country’s economic conditions and management of state finances, she added.

Indonesia is also the first country in Asia to issue sovereign bonds since the outbreak of COVID-19 pandemic began.

Data shows that from February to March, no country in Asia entered the global bonds because of huge volatility and turmoil.

Sri Mulyani also said that the issuance of those three bond series is the largest publication in the history of US Dollar Bond issuance by the Indonesian Government.

She added that the issuance of USD bonds aims to maintain safe financing, while increasing foreign exchange reserves for central bank Bank Indonesia (BI).

The utilization of this publication, she added, is also expected to be very positive amid the turbulence of global financial markets.

The global bond issuance is carried out electronically without any physical meeting due to social distancing measure following the COVID-19 outbreak. (Public Relations of Ministry of Finance / EN)

Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas