Cempaka Business and Economy: Indonesia Sells Dollar Bonds Yielding Over 10 Percent

"A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) - (Text version)

"The Timing of the Great Shift" – Mar 21, 2009 (Kryon channelled by Lee Carroll) - (Text version)

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.
They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."

"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”

Friday, February 27, 2009

Indonesia Sells Dollar Bonds Yielding Over 10 Percent

By Lilian Karunungan, Bloomberg

Feb. 27 (Bloomberg) -- Indonesia, Southeast Asia’s biggest economy, sold $3 billion of bonds in the largest dollar debt fundraising by a developing nation this year after offering more than double the premium over U.S. Treasuries it paid in June.

Indonesia sold $2 billion of 10-year notes to yield 11.75 percent, or 8.759 percentage points more than similar-maturity U.S. Treasuries, according to Barclays Plc, which along with UBS AG arranged the sale. It also sold $1 billion of five-year notes to yield 10.5 percent, 8.474 points above U.S. government debt.

“Indonesia was just being realistic in accepting the higher yield given the tough market conditions,” said Goh How Phuang, a portfolio manager in Singapore at Schroder Investment Management Ltd., which oversees $158 billion. “They had to make it more attractive for investors to ensure a strong response.”

The sale, twice the size of last month’s international bond sale by the Philippines, will help President Susilo Bambang Yudhoyono’s government finance its proposed 139.5 trillion rupiah ($11.6 billion) budget deficit. Policy makers in developing nations are seeking to boost supplies of foreign exchange as a deepening global recession pummels exports and prompts global funds to shun emerging-market assets.

‘Attractively Priced’

Standard & Poor’s this week cut its credit ratings for Ukraine and Latvia, and lowered India’s rating outlook to negative from stable. The company downgraded Ukraine’s rating to CCC+, seven levels below investment grade, while Latvia’s was lowered to BB+, the highest junk rating. S&P had affirmed India’s BBB- long term credit rating, the lowest level in the investment grade.

Bank Indonesia Governor Boediono told reporters in Jakarta today that the yield on the dollar bond was is in line with market conditions and the funds raised will add to the supply of foreign currency.

The Philippines sold $1.5 billion of 10-year notes to yield 8.5 percent, or 6 percentage points more than U.S. Treasuries on Jan. 8 and Turkey, which has the same debt rating as Indonesia, the same day sold $1 billion of eight-year bonds to yield 5.01 percentage points above Treasuries. In Indonesia’s last international offering in June 2008, 10-year bonds were priced to yield 7.27 percent, 3.06 points more than Treasuries.

Indonesia’s latest issue was “attractively priced,” said Anton Hauser, who helps oversee the equivalent of $1.1 billion of emerging-market debt at Vienna-based Erste Sparinvest KAG. “However, a relatively large issue size could weigh negatively on the bond’s secondary market performance.” Hauser said he didn’t buy because of “some outflows” from his funds.

‘High Spreads’

The extra yield investors demand to own Indonesia’s dollar bonds instead of Treasuries has narrowed 119 basis points, or 1.19 percentage points, to 7.22 percentage points since reaching this year’s high on Jan. 15, according to JPMorgan Chase & Co. The spread averaged 1.69 percentage points in the first half of 2007, before a global credit crisis began.

“Considering actual high spreads, there are good opportunities for investors who can discriminate between good and bad stories,” said Ernesto Bettoni, a London-based investment specialist at Fortis Investments, which oversees the equivalent of $244 billion in assets.

‘Tap Markets’

Indonesia’s parliament approved this week a 73.3 trillion rupiah stimulus package to help the economy and endorsed the 2009 budget, paving the way for the country to sell as much as $4 billion of dollar-denominated debt. Philippine Finance Secretary Gary Teves said yesterday the nation, facing its biggest budget deficit in five years, will consider selling more debt overseas.

“Countries are trying to tap debt markets as quickly as possible in case the situation deteriorates further in the second half,” said Paul Biszko, a senior emerging-markets strategist with RBC Capital Markets in Toronto.

Indonesia’s gross domestic product rose 5.2 percent in the fourth quarter, the smallest increase in more than two years, and the government forecasts economic growth will slump to 4.5 percent this year from 6.1 percent in 2008.

Debt from Indonesia, which raised $4.2 billion from dollar- denominated bond sales last year, is rated BB- by Standard & Poor’s and Ba3 by Moody’s Investors Service, three levels below investment grade.

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net;

Indonesia has just sold $3b in dollar bond

Cempaka Business and Economy

Pages

Friday, February 27, 2009

Indonesia Sells Dollar Bonds Yielding Over 10 Percent

No comments:

The Jakarta Post: Review/Outlook 2010