JAKARTA. The government has issued US$3 billion and €1 billion global bonds with maximum tenors of up to 50 years at the start of 2021.
The global bonds consist of three government securities in US dollar, namely RI0331 with a 10-year tenor, RI0351 with a 30-year tenor, and RI0371 with a 50-year tenor, as well as one series in euro, namely RIEUR0333 with a 12-year tenor.
Proceeds from the bond issuance will be used to finance the State Budget in general, including to speed up economic recovery amid the coronavirus (COVID-19) pandemic and strengthen structural reforms, said a statement issued by the Ministry of Finance's Directorate-General of Financing and Risk Management.
The issuance of the dual-currency bonds aims to benefit from high market liquidity and positive sentiments in the financial market in response to the development of COVID-19 vaccines.
The government has obtained an all-time low yield in the transaction across all tenors. For the US dollar series, the initial price guidance ranges between 2.350% to 3.850%. (AM/MS)