Corona bonds

Indonesia’s pandemic bond debut shows promise but widespread adoption is doubtful

The sovereign has sold its largest-ever bond. This should help protect the economy from the coronavirus and finances a significant portion of its stimulus package. However, the structure is unlikely to be utilised globally for political reasons.

European sovereigns might still continue to argue about the need to sell coronabonds, but the Republic of Indonesia has no such qualms. Last week, April 7, it sold an impressive $4.3 billion three-tranche bond, proceeds of which will partly be used to fight the COVID-19 pandemic.

Not only is the senior secured deal the country’s first coronabond, it is also the largest from the sovereign and, with a 50-year tranche, the longest tranche ever seen in Asia.

Despite market turmoil, the issue was launched after the government had announced a Rp405 trillion $24 billion stimulus package. It was “as good as time as any to do...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222