Indonesia raises US$3bil in U.S. dollar bonds

SYDNEY/JAKARTA: Indonesia has raised $3 billion in a U.S. dollar bond issuance, its first for the year in a transaction that drew in a total of $14.4 billion worth of orders, the government said on Thursday.

The Southeast Asian government issued the bonds in five-, 10- and 30-year tranches which raised $1 billion, $1.25 billion and $750 million respectively, the term sheet showed.

There were final orders worth $3.6 billion for the five-year bond, $4.7 billion for the 10 year and $6.15 billion for the longest dated tranche, details from one of the banks working on the deal showed.

The size of the order book showed "large investors' interest", which allowed Indonesia to tighten prices from its initial price guidance, it said in a statement.

Final yields were set at 4.8% for the five year, 5.1% for 10 year and 5.75% for the 30-year bond.

The proceeds will be used for general financing of the state budget.

Throughout the year, the government usually offers foreign investors bonds denominated in U.S. dollar, euro and Japanese yen. It is also a regular issuer of Islamic bonds. - Reuters