Indonesia Raises $4.3b In First Pandemic Bond Offering

Indonesia has raised $4.3 billion in its first so-called “pandemic bond”, which included the longest-dated dollar debt tranche ever issued in Asia, according to a term-sheet seen by Reuters.

The deal was finalised in the U.S overnight and sold in tranches of 10.5 years and 30.5 years, worth $1.65 billion each, and a $1 billion 50-year tranche.

It was Indonesia’s largest bond deal and the first time a 50-year dollar deal has been issued in Asia, not including rolling hybrid transactions, according to the term-sheet.

The term-sheet showed Indonesia will use the cash raised to partially “fund its COVID-19 relief and recovery efforts”.

Indonesia’s government announced on Monday the 2020 estimated net bond issuance was raised to 549.6 trillion rupiah ($33.55 billion) to cover the country’s widening deficit

It also listed a plan for sales of 449.9 trillion rupiah ($27.47 billion) worth of “pandemic bonds” to cover additional spending for the COVID-19 response.

Citigroup, Deutsche Bank, Goldman Sachs, HSBC and Standard Chartered were the joint book runners for the deal, according to the term-sheet.

Reuters