Uber has been ordered to pay a 300,000 euro ($336,600) penalty, adding to the challenge of a court-ordered partial shutdown imposed on its...

Stock Market

Uber Must Pay $336,600 Penalty on Top of Brussels Near-Shutdown

The Department of Energy (DOE) said, that the United States has launched an auction for 32 million barrels of crude from four strategic...

Commodities

U.S. to Sell 32 million Barrels of Crude Oil from 4 SPR Sites

The energy ministry said the United Arab Emirates will show complete commitment and cooperation with the OPEC+ agreement.

Commodities

UAE Will Offer Complete Support to OPEC+ Decisions

Asian shares fell lower as the dollar went up on Thursday. Investors are looking towards hike rate policies...

Stock Market

Asian Shares Decline as Dollar Goes Higher

The Turkish Lira began on its recovery after reaching record lows caused by the President’s interest rate cuts.

Stock Market

Turkish Lira Finally Rebounds After Months of Lows

World

14 Sept 2021

Indonesia; the First Asian Nation to Buy Back Global Bonds after raising $1.84B

Indonesia; the First Asian Nation to Buy Back Global Bonds after raising $1.84B

The Index Today

According to documents and a statement from the government, Indonesia has managed to raise $1.84 through selling bonds denominated in euros and U.S dollars. A portion of the sales revenue will be used to buy back outstanding US dollar bonds.

This move is the first ever in the region to take place for dollar bonds through which liquidity may be managed before the U.S tapering begins.

Term sheets show that Indonesia has sold 10-year bonds for a total of $600 million which carry 2.18% yield. Side by side, 40-year bonds worth $625 million carry a yield of 3.28%. The proceeds will later be used to finance a tender offer that continues until Friday for eight existing bonds maturing between 20222 and 2026.

According to analyst Handy Yunianto, the buyback offer is an effort to reprofile debts and minimize refinancing risks with tenor bonds that lock at a now relatively low yield. The prices being offered are lower than market prices.

Indonesia has already raised 500 million euros in its first ever sale of euro-denominated bonds. These funds will be allocated to sustainable development goals and efforts. The euro bonds have a 12 year maturity and carry a 1.352% yield. These rank as the regions first SDG bonds and gain higher interest rates from investors.

The 10-year dollar bond order book is worth $2 billion whereas the 40-year orders are worth $1.2 billion. Indonesia’s fiscal deficit has increased in 202 due to the covid pandemic. The central bank is working to buy bonds directly from the government to help reduce the growing interest expenses in the coming years.