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.

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