Indonesia's $1 billion sukuk rides on hopes of upgrade

Indonesia's new seven-year bonds trade up initially but slip in reaction to the guidance released on PLN's bonds.

The Republic of Indonesia early Tuesday morning priced a $1 billion seven-year sukuk, riding on investor optimism that the country could be upgraded to investment-grade status soon.

The guidance was released in the area of 4.25% on Monday morning and the bonds priced at a profit rate which is similar to a yield of 4%, at the tight end of the 4% to 4.125% final guidance.

While Indonesia is still rated...

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