Indonesia has room for a global bond sale this quarter as the government plans its borrowing program for the rest of the year, according to Finance Minister Suahasil Nazara. The newly appointed chief stated there is still room for global currency issuance in the remaining three months of 2024. The government is also designing its borrowing program for next year after lawmakers approved the budget this week.
Suahasil, a widely respected and long-serving technocrat, is Indonesia’s third finance minister in just two years. Like many emerging markets, Indonesia is contending with a surge in global bond yields that pushed Treasury yields to the highest in more than two decades. Local yields have risen, with Indonesian government bonds handing dollar-based investors an almost 8% loss this year.
Indonesia last tapped global markets for financing in May, selling $3.45 billion of bonds in dollars and euros. The spread on the sovereign’s dollar bond maturing in April 2036 is hovering about 106 basis points over Treasuries, the widest in about two months. The finance minister spoke with Bloomberg Television’s Haslinda Amin in his first media interview since taking office in September.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing