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Indonesia grab $3.5 billion from global bond market: Sources


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JAKARTA (TheInsiderStories) – Indonesia grabbed US$3.5 billion from the issuance of debt securities denominated in US dollar denominated yesterday, said sources closed to the deal. The funds will using to cover spending needs at the beginning of 2017 (pre-funding).

The sources said, the pricing of the government securities conducted on Friday morning, while the settlement will be made on Thursday. The bonds consisting of three tenors five, 10 and 30 years.

Finance Minister Sri Mulyani Indrawati denied to comment on the global bond issuance but previously Directorate General fro debt management & risk management Robert Pakpahan said the country seeking fund Rp40 trillion to finance the government spending in the first quarter of 2017.

He added, Indonesia plans to release global bonds with worth around Rp149.2 trillion ($11.5 billion) in 2017 in US dollar, Euro and Japan Yen to finance the deficit of 2017’s State Budge. This year the government targeting the budget deficit at 2.5 to 2.7 percent of gross domestic product (GDP).

“Policy issuances of government bond in foreign currency in the range of 20-25 percent of total gross issuance Rp 596.8 trillion in Euros, US, Yen including global SUKUK,” said Pakpahan.

He elaborate more, in January to October, total gross issuance of government securities has reached Rp 597.8 trillion. Until the end of the year, the government still requires the issuance of debt to Rp56.2 trillion if the deficit widening to 2.7 percent of GDP, he said.

For Islamic financing issuance, He explained, project finance will ear-maked from the governement institution is recorded Rp16.77 trillion from Minister of Transportation Rp1.44 trillion, Minister of ReligionRp 7.9 trillion and Minister of Public Working & Housing Rp7.43 trillion.

In the State Budget of 2017, the government expects the total gross issuance of government securities amounting to Rp 597trillion to cover the budget deficit of Rp 330.17 billion or 2.41 percent of gross domestic product.


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Source: The Insiderstories
Indonesia grab .5 billion from global bond market: Sources

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