Indonesia's Finance Ministry stated that the issuance was extremely well received by the market, including new investors such as asset management and pension funds.

The sale involved three-, five- and seven-year maturities with coupon rates of 0.65 percent, 0.89 percent and 1.04 percent, respectively.

In 2016 the Indonesian government had already sold Samurai bonds through a private placement. Back then it involved 3-year maturities, sold with a 0.83 percent coupon rate, and 5-year bonds sold at 1.16 percent. It attracted only about half the amount of bids compared to the latest Samurai bond deal.

After Standard & Poor's upgraded Indonesia's sovereign ratings to investment grade earlier this month, Indonesia now has investment grade status from all key three credit rating agencies. This should open up a pool of capital inflows from conservative investors.

Samurai Bond Sale Indonesia (31 May 2017):

Maturity Amount
  (yen)
Coupon Bps spread over Yen
   Offer-Side Swap
3-year 40 billion  0.65%               55
5-year 50 billion  0.89%               75
7-year 10 billion  1.04%               85

Source: Finance Ministry Indonesia

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