Tuesday, January 12, 2010

Indonesia Govt price bonds 6% and 7.25%

Indonesia Goverment may price 10-year U.S.dollar-denominated bonds to yield about 6 percent and 30-year securities at about 7.25 percent. The government is seeking to raise $3 billion to $4 billion from the sale.
Those yields would give premiums of 2.2 percentage points and 2.54 percentage points more than similar-maturity U.S. Treasuries.
Debt from Indonesia, which raised $3 billion from dollar- denominated bond sales in February last year, is rated Ba2 by Moody's Investors Service and BB by Fitch Ratings, both of which
are two levels below investment grade. S&P ranks Indonesia at BB-, three levels below investment grade and on a par with Turki.
Indonesia Goverment hired Barclays Capital Plc, Citigroup Inc. and Credit Suisse Group AG to underwrite the bonds sale.

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