Indonesia Offers Dollar Bonds at Highest Yield Since 2010
10 Jul 2013 07:24 GMT
 
Indonesia is marketing its second dollar-denominated bond this year at the highest yield since 2010 after an April issue handed investors a 12 percent (more)

Indonesia is marketing its second dollar-denominated bond this year at the highest yield since 2010 after an April issue handed investors a 12 percent loss.

The price guidance for the 10-year notes is 5.45 percent, Robert Pakpahan, director general at the debt management office, said in Jakarta today. That would be the highest for the tenor since 6 percent was paid in January 2010, data compiled by Bloomberg show. The decision was taken to sell now because of uncertainty about what market conditions will be like later in 2013, Pakpahan said.

Emerging-market sovereign bonds have tumbled since the Federal Reserve signaled in May plans to scale back $85 billion a month of debt purchases that drove borrowing costs to record lows. The indicative yield for Indonesia's current offering is 2.82 percentage points more than for similar-maturity Treasuries, compared with a 1.75 percentage point premium at the April sale, at which the debt was priced to yield 3.5 percent, Indonesia's lowest-ever for a non-Islamic offering.


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