Indonesian govt reaps $1 bn in bonds
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The Indonesian government says it has sold 11.55 trillion rupiah (US$1.19 billion) in rupiah bonds, higher than its indicative target of 8 trillion rupiah, at auction on Monday.
The government auctioned five series of bonds, with maturities of six months, one year, six years, 15 years and 20 years. Total bidding reached 20.15 trillion rupiah.
The Finance Ministry reported that the government gained 1 trillion rupiah from the sale of three-month bonds and 1.35 trillion rupiah from one-year bonds, while the six-year bonds generated 2.05 trillion rupiah, the 15-year generated 2.25 trillion rupiah and 20-year bonds 4.9 trillion rupiah.
The bid-to-cover ratio, which measures investor demand, was 2.1 for six-year bonds and 1.59 for 20-year bonds.
The auction followed a successful bond sale last month that raised 10.5 trillion rupiah.
The government has raised 116 trillion rupiah or about 41.3 per cent of its 281.1 trillion rupiah bonds issuance target for 2013 to date.
According to Bank Danamon economist Dian Ayu Yustina, despite the negative sentiments resulting from the recent revision of Indonesia’s outlook by Standard & Poor’s, foreign investors would increase their stake in bonds, which stood at 299.7 trillion rupiah, equal to 34 per cent of total outstanding as of May 2.
