JAKARTA (Yosefardi) – Government of Indonesia will accelerate the issue of euro bonds worth US$1 billion, scheduled for end this months, to respond European Central Bank’s (ECB) rate cut.
The euro bonds will have tenor of 7 years, part of global bond issue program worth US$4.24 billion for this year. Government might offer a high coupon because this euro bond issue is the first time issue.
The government opts to issue yen-based bond (samurai bond) and euro bond as diversification of government’s debt instruments.
The government will pay matured foreign currency debt of US$9 billion this year. In January 2014, government had issued global bond worth US$4 billion.