Indonesia Mulls Dollar Bond Sale as Turkey Crisis Deepens Rout (Bloomberg)

Indonesia Mulls Dollar Bond Sale as Turkey Crisis Deepens Rout (Bloomberg)

Bloomberg Aug 14, 2018


As a selloff in Indonesian rupiah debt persists, the government is weighing a global dollar bond offering as an option to bridge the nation’s budget deficit, according to a finance ministry official.

The dollar bond sale plan “is in the government’s worst-case scenario” if domestic securities market continues to be volatile, Scenaider Siahaan, the ministry’s director of debt portfolio and strategy, said by phone on Monday. “That would be a conditional response. We will first assess the situation, whether or not things will turn for the better,” he said.

The rout, renewed by the losses in Turkey, has sent the benchmark bond yield soaring to a 19-month high as foreign investors dumped emerging market assets. Indonesia is set to raise 10 trillion rupiah ($684.5 million) from a debt auction on Tuesday and any signs of low investor interests would be a factor in its consideration, Siahaan said.

(Source: Bloomberg)