Indonesia hits bond market with $2 billion issue

Indonesia has been quick to follow the Philippines with the issue of its first sovereign bond in 2010. The $2 billion SEC-registered deal was jointly arranged by Barclays Capital, Citi and Credit Suisse and was described by one banker as Indonesia's best transaction to date from a pricing perspective.

This 10-year deal, which was issued off Indonesia's global medium term note programme, was not without its share of controversy, however, with rival bankers and the Indonesian press questioning the timing and pricing of the sale, based on initial market rumours that Indonesia would place a $3 billion to $4 billion deal in the New Year.

The talk generated in the...