Indonesia will price a new 10-year sovereign bond at a tight yield amid a strong initial response from domestic and international investors, according to a market source.
The source said the issue was being marketed with an indicative yield of 7 per cent, or about 300 basis points above the equivalent 10-year United States treasury.
Orders reached US$800 million late yesterday. Indonesia has yet to decide on the bond's size although the country is widely believed to be targeting $500 million to $1 billion.
Demand for the issue could easily outstrip supply.
A roadshow is not expected to be completed until the middle of the week and has yet to reach US investors in New York.
'But given the overwhelming response from investors, it would likely raise US$1 billion,' the source said.
