REPUBLIKA.CO.ID, JAKARTA -- The government issued global bonds on US dollar in RI0126 and RI0146 series as part of pre-funding policy for the fiscal of 2016.

Directorate General of Finance and Risk Management of Ministry of Finance, in a written press statement on Wednesday (2/12), stated the sales transaction were made on 1st December 2015 New York time, United States.

This issuance was part of a pre-funding policy as stated in Law No.14 of 2015 on State Budget 2016, which is issuing securities at the end of 2015 to ensure the availability of budget at the beginning of 2016.

RI0126 series bonds have a tenor of 10 years with a nominal of 2.25 billion US dollars and have a coupon rate of 4.75 percent with maturity date on 8th January 2026. The securities series have highest distribution in the United States by 62 percent, in Europe by 14 percent, in Asia except Indonesia by 10 percent, and in Indonesia by 14 percent.

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By investor type, asset managers got the highest allocation of 75 percent, then banks of 18 percent, insurance/pension funds of four percent, private banks of one percent, and sovereign wealth funds of two percent.

Meanwhile, RI0146 series bonds have a tenor of 30 years with a nominal of 1.25 billion US dollars and have a coupon rate of 5.95 percent with maturity date on 8th January 2046. The security series have highest distribution in the United States by 50 percent, in Europe by 26 percent, in Asia except Indonesia by 22 percent, and in Indonesia by two percent.

By investor type, asset managers got the highest allocation of 71 percent, then insurance/pension funds of 21 pension, banks of six percent, private banks of one percent, and sovereign wealth funds of one percent.

The yield was 20 basis points (bps) tighter than the initial price guidance which was five percent for a tenor of 10 years and 12.5 basis points (bps) tighter from the initial price guidance which was 6.125 percent for a tenor of 30 years.

While the total incoming bids (total order book) was amounted to 8.1 billion US dollars, so there was oversubscription of 2.3 times. This result indicated high confidence of investor and positive sentiment on the outlook for Indonesian economy.

The Joint Lead Managers and Joint Bookrunners in this transaction were BofA Merrill Lynch, CIMB, Citigroup, and HSBC. As co-managers were PT Bahana Securities, PT Danareksa Securities, PT Mandiri Securities, and PT Trimegah Securities.

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