Indonesia prices long bond tightly, but slips in trading

The Republic of Indonesia became the second sovereign to tap the dollar bond market in 2012 when it priced a $1.75 billion 30-year global early Tuesday morning. It is the biggest long-dated bond from an Asian borrower this year and carries the lowest yield for a new 30-year bond from the region.

The coupon for the bonds was fixed at 5.25% and the notes were reoffered at 98 to yield 5.375%, at the tight end of the 5.375% to 5.5% final guidance. That translated to a spread of 240bp over 30-year Treasuries, which was 30bp less than the 270bp over 10-year Treasuries paid by South Africa rated A3 by Moody’s...