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View all search resultsGlobal bonds spike in popularity amid uncertainty
Mandiri Sekuritas has seen its global bonds revenue increase by 41 percent year-on-year in the first half as the government and corporates issued more dollar-denominated debt.
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he popularity of global bonds issued by the Indonesian government and corporations has spiked as both investors and issuers seek to limit foreign currency risks and improve liquidity amid market uncertainty, according to securities company Mandiri Sekuritas.
Mandiri Sekuritas, a subsidiary of state-owned Bank Mandiri, has seen its revenue from the global bonds business increase 41 percent year-on-year (yoy) in the first half as the government was actively issuing US dollars bonds.
“Investors consider Indonesia’s dollar-denominated bonds as premium ones,” Mandiri Sekuritas president director Dannif Danusaputro said during a press conference on Thursday.
The government has issued Rp 630.5 trillion (US$43.1 billion) worth of sovereign debt papers (SBN) as of the end of June, including $4.3 billion from a three-tranche US dollar-denominated bond in April and $2.5 billion from a three-tranche global sukuk (sharia-compliant bond) last month, according to the Finance Ministry.
The government also raised 100 billion yen ($930 million) from the issuance of five-tranche samurai bonds earlier this month.
The vast amount of debt papers were issued by the government to cover its budget deficit of 6.34 percent of the gross domestic product this year as Rp 695.2 trillion has been allocated to bolstering the economy and strengthening the healthcare system amid the COVID-19 pandemic.
