Indonesia Eximbank's $500 million debut attracts exuberant demand

Indonesia Eximbank on Thursday night priced a $500 million inaugural dollar bond, attracting exuberant demand from investors. The five-year bonds priced at a yield of 3.9%, at the tight end of the final guidance, which was 3.9% to 4%, and about 22.5bp inside the initial guidance of 4.125%.

Indonesia Eximbank is 100% owned by the Indonesian government through the Ministry of Finance. The bank is rated Baa3 by Moody’s and BBB- by Fitch, which is the same as the Indonesian sovereign, as the bank is expected to receive a high level of state support if needed.

The deal attracted an order book of $5 billion from...