indonesia-issues-995-million-retail-bond

Indonesia issues $995 million retail bond

The government's third and largest retail bond this year generates strong demand.

Rosie Slater

September 21, 2007

Indonesia has raised Rp9.4 trillion $995 million through a government retail bond offering ORI, attracting a bid totalling almost $1 billion. The transaction marks the third retail bond issued by the Indonesian government this year in its efforts to diversify financing sources and broaden the investor base of its domestic bond market.

The four-year deal priced at par with a coupon of 9.4%, payable monthly. A total of 22,837 retail investors participated in the transaction which stipulated a minimum order of Rp5 million. The bonds were sold to individuals of Indonesian citizenship through 16 selling agents, providing investors with a higher coupon rate than traditional time deposits.

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