Indonesia to Sell 5- and 10-Year Dollar Bonds
Indonesia plans to sell dollar- denominated bonds due in 2014 and 2019 in international markets today, according to an e-mail sent by Barclays Plc to investors, Bloomberg reported.
Barclays and UBS AG are joint arrangers of the sale and the notes will be priced early today in New York, the e-mail said. The debt sale will be a benchmark offering, which typically means at least $500 million, according a person familiar with the transaction, who declined to be identified because terms aren't set.
Indonesia joins other emerging-market countries including Brazil, Mexico and the Philippines that have tapped international credit markets to fill budget shortfalls as the global recession curbs export revenue.
"Countries are trying to tap debt markets as quickly as possible in case the situation deteriorates further in the second half," said Paul Biszko, a senior emerging-markets strategist with RBC Capital Markets in Toronto. "It doesn't surprise me that Indonesia is trying to issue."
Indonesia's parliament yesterday approved a 73.3 trillion rupiah ($6.1 billion) stimulus package and endorsed the 2009 budget, paving the way for the country to sell as much as $4 billion of dollar-denominated debt to finance a budget deficit of 139.5 trillion rupiah, or 2.5 percent of gross domestic product.