The deal was finalized in Japan on Thursday and sold in maturities of 20 years, worth 1.5 billion yen with a coupon rate of 1.8 percent; 10 years, worth 13.4 billion yen with a 1.59 percent coupon rate; and seven years, worth 10.1 billion yen with a 1.48 percent coupon rate.

The five-year tenure is worth 24.3 billion yen with a coupon of 1.35 percent and the three-year tranche is worth 50.7 billion yen with a 1.13 percent coupon. The settlement date is set for July 8.

“The funds raised will be used to finance the budget deficit, including to fund COVID-19 relief and recovery efforts,” the ministry said in a statement. “Indonesia’s transaction is the first issuance of the sovereign Japanese yen in 2020 and the first issuance from an Asian [country] since the pandemic hit.”

The government faces the daunting task of funding the budget deficit of 6.34 percent of gross domestic product this year, with Rp 695.2 trillion ($49 billion) set aside to bolster the economy and strengthen the healthcare system.

The government is planning to offer Rp 900.4 trillion worth of sovereign debt papers in the second half of the year as debt financing swells significantly to fund the country’s coronavirus response.

It had raised Rp 630.5 trillion worth of debt papers until June this year, including $4.3 from a three-tranche US-dollar bond in April and $2.5 billion from a three-tranche global sukuk (sharia-compliant bond) last month.

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