Indonesia closes $1 billion bond amid muted demand

Indonesia is first to go after pause in debt markets, raising $1 billion after budget deficit is wider than expected.
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Indonesia has revised its funding needs after the budget deficit turned out to be wider than expected
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<div style="text-align: left;"> Indonesia has revised its funding needs after the budget deficit turned out to be wider than expected </div>

The Republic of Indonesia priced a $1 billion bond on Wednesday night, the first dollar bond out of Asia ex-Japan in more than a month.

While the first five months of 2013 saw unprecedented supply from the region, the sharp spike in US Treasury yields in May and June sparked a dramatic sell-off in Asian credit. The last dollar bond was Huaneng’s $400 million bond, which crossed the line early June with help from Chinese banks.

Times have clearly changed and this was reflected in the ROI’s deal, which attracted a muted order book of $1.9 billion from 120 investors. This contrasted sharply with Asian sovereign...

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