The Jakarta Post
Indonesia has just sold US$3 billion in medium-term notes, the country’s largest ever dollar-denominated bond sale, to help plug the growing state budget deficit.
The Southeast Asia’s largest economy has sold $2 billion of 10-year bonds, with a yield of 11.75 percent, and $1 billion of five-year bonds, with a yield of 10.5 percent, according to a Finance Ministry statement Friday.
The yields of 10-year notes and five-year notes are 8.759 percentage points and 8.474 points respectively, higher than similar-maturity US Treasuries, Bloomberg reported.
Anggito Abimanyu, the ministry’s head of fiscal policy, said the bonds would help cover the budget deficit of Rp 139.5 trillion, equal to 2.5 percent of gross domestic product (GDP), and increase forex reserves.
“Our trade surplus has declined;, while there has been a capital outflow from o...