Indonesia raises $4.3b in first ‘pandemic bond’ offering

Seberang Menara Astra, Kuningan, Setia Budi, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta, Indonesia. Photo: Afif Kusuma/unsplash

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

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.