The Republic of Indonesia early Tuesday morning priced a $1 billion seven-year sukuk, riding on investor optimism that the country could be upgraded to investment-grade status soon.
The guidance was released in the area of 4.25% on Monday morning and the bonds priced at a profit rate which is similar to a yield of 4%, at the tight end of the 4% to 4.125% final guidance.
While Indonesia is still rated Ba1 stable by Moody’s and BB positive by Fitch Ratings and Standard Poor’s, just one notch shy of investment grade, investors are clearly taking the view that the sovereign will be upgraded. The yield it...
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