Indonesian Government raises $4.3 b in first ’pandemic bond’

Thursday, 9 April 2020 00:00 - - {{hitsCtrl.values.hits}}

HONG KONG (Reuters): Indonesia has raised $ 4.3 billion in its first so-called “pandemic bond”, which included the longest-dated dollar debt tranche ever issued in Asia, according to a term-sheet seen by Reuters.

The deal was finalised in the US overnight and sold in tranches of 10.5 years and 30.5 years, worth $ 1.65 billion each, and a $ 1 billion 50-year tranche.

It was Indonesia’s largest bond deal and the first time a 50-year dollar deal has been issued in Asia, not including rolling hybrid transactions, according to the term-sheet.

The term-sheet showed Indonesia will use the cash raised to partially “fund its COVID-19 relief and recovery efforts”.

Indonesia’s Government announced on Monday the 2020 estimated net bond issuance was raised to 549.6 trillion rupiah ($ 33.55 billion) to cover the country’s widening deficit.

It also listed a plan for sales of 449.9 trillion rupiah ($ 27.47 billion) worth of “pandemic bonds” to cover additional spending for the COVID-19 response.

Citigroup, Deutsche Bank, Goldman Sachs, HSBC and Standard Chartered were the joint book runners for the deal, according to the term-sheet.

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