Govt to launch about Rp 6t of Samurai bonds

JAKARTA: Indonesia’s Finance Minister Agus Martowardojo confirmed in Jakarta Thursday that the government would offer yen-denominated bonds worth about Rp 6 trillion (US$672 million) in November.

The minister said that the so called Samurai bonds, guaranteed by the Japan Bank for International Cooperation (JBIC), would be issued to help plug the state budget deficit.

The government issued its first Samurai bonds in July last year. The ¥35 billion ($382.1 million) of bonds offered an annual yield of 2.73 percent.

This year’s budget deficit is projected to reach Rp 133.7 trillion, or 2.1 percent of the gross domestic product (GDP), according to the 2010 revised state budget. (ebf)