JAKARTA, July 21 (Reuters) - Indonesia is marketing three tranches of U.S. dollar-denominated bonds, a finance ministry official said on Wednesday, in what would be its fourth global debt issuance this year.
The bonds offered are 10-year bonds with initial price guidance around 2.550%, as well as bonds maturing in 2051 with price guidance in the 3.450% area and bonds maturing in 2071 in the 3.700% area.
“Through book building, the government is targeting an issuance in USD (U.S. dollar) benchmark size,” Deni Ridwan, debt securities director at Finance Ministry said, adding that the issuance is in line with the government’s financing strategy.
So far this year, Indonesia has raised $6 billion in U.S. dollar denominated bonds and sukuk, as well as 1 billion euro and 100 billion Japanese yen notes.
Indonesia had to boost its spending last year and this year to mitigate the impact of the pandemic. Southeast Asia’s biggest country is currently suffering one the worst outbreaks in the world, with daily infections repeatedly topping 50,000 last week and a record 1,338 deaths registered on Monday.
Finance minister Sri Mulyani Indrawati said at the weekend that Indonesia will expand its COVID-19 recovery budget to 744.74 trillion rupiah ($51.38 billion) from 699.43 trillion rupiah.
Meanwhile, President Joko Widodo on Tuesday extended coronavirus restrictions to July 25. (Reporting by Tabita Diela Writing by Fransiska Nangoy Editing by Ed Davies)

Source: Reuters

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