REPUBLIKA.CO.ID, JAKARTA -- The government has for the first time sold foreign exchange bonds valued at one billion euro.

The government concluded the euro bond transaction on July 2 as part of the program of selling US$25 billion worth of Global Medium Term Notes (GMTN).

The selling of euro bonds is part of the strategy to diversify sources of finance and expansion of base of global investors, the debt management directorate general said here on Thursday.

The fund from the bonds sales would be used to help finance the 2014 state budget .

The bonds would be for seven years or it would be due for repayment on July 8 in 2021. The bonds carry a coupon rate of 2.88 percent with a yield of 2.98 percent.

The bonds were oversubscribed 6.7 times with demand reaching 6.7 billion euro.

Around 24 percent of the bonds are for British investors, another 24 percent for Asian investors, 19 percent for German and Austrian investors , 18 percent for US investors , 4 percent for Swiss investors and 11 percent for other European investors.

The Indonesia government debts are given a rating of BBB- (stable) by Fitch, BB+ (stable) by S&P, and Baa3 (stable) by Moody's international rating agency.

Joint Lead Managers and Joint Book runners in the transaction are Bank of America Merrill Lynch, Citigroup and Deutsche Bank, with PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas as co-managers.

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