#Indonesia on the radar as #Investor’s flee #Eurozone

With the turmoil and uncertainty associated with the #Eurozone, long term bond investors are seeking alternative places to invest their dollars.  It seems one star performer has particularly caught their eye.  Earlier this week Indonesia sold US$1.75 billion dollar denominated 30 year bonds which offered a 5.25% coupon to yield 5.375% – more than 200 base points higher than that for the US 30 year bond.  #HSBC, #JP Morgan Chase and #Standard Chartered arranged the bond sale. 

The offering was the first for Indonesia since it had joined the ‘investment grade’ club, when Fitch Ratings had upgraded Indonesia’s rankings to BBB- on Dec 15 2011.  At the same time the Rating agency lowered France’s outlook and placed Spain and Italy on review for a downgrade.

The Indonesian Finance Ministry  stated it received US$3.6 billion in orders – more than double the amount on offer. 51% of which came from the US, 12% from Europe and 37% from Asia.  With some predicting Indonesia’s GDP to increase to 6.2% in 2012 and with a growing middle class and the 4th most populous country in the world  (approx 240 million) it’s no wonder Indonesia is on investor’s radar.

Want to find out more about how to capitalise on the wave of investment opportunities coming out of Indonesia? Enquire today about the 2012 Indonesia Investment Summit.