Indonesia will launch a sovereign bond at the end of this month to help raise funds to finance the state budget deficit, a finance ministry official told reporters on Friday.
The deal, expected to be worth around $1 billion, will be Jakarta's second offshore debt issue this year. The bond had been previously announced, although the government had only said it would be issued before the end of the year. "There will be roadshows within the next two weeks, followed by pricing," Mulia Nasution, the director-general of treasury at the finance ministry, said. Roadshows would be held in Hong Kong, London and New York.
Citigroup, Credit Suisse First Boston and Merrill Lynch are the lead managers for the deal.
Jakarta last tapped the global bond market in April, when it sold $1 billion in 10-year bonds. That deal was arranged by Citigroup, Deutsche Bank and UBS.
Those bonds were quoted on Friday at around 100.625/101.125.
The bond issue comes after a period of turmoil in Indonesian markets, when record high oil prices sparked fears of high inflation and fuel subsidies widening the budget deficit.