Indonesia saves over 160bp with $4b bond

The Southeast Asian country raises its first dual-tranche bond of the year, obtaining a $20 billion order book and pricing it flat to its secondary offerings.

The Republic of Indonesia raised a $4 billion dual-tranche bond early on Friday morning, pricing it flat to where its existing notes were trading in secondary markets.

Buoyed by the still-low rates environment and strong investor sentiment towards the emerging market, the sovereign priced its $2 billion 10- and 30-year offerings at 4.2% and 5.2% respectively, approximately 30bp tighter than their initial price guidance area, according to a source familiar with the matter.

This is substantially lower than where ROI came during the same period last year. Similar to last January, the borrower raised a $4 billion bond also split equally into 10- and 30-year buckets. The...

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