The Republic of Indonesia ( RoI ) has kick-started the G3 sovereign bond issuance in Asia, pricing on January 13 a triple-tranche transaction totalling US$2.7 billion to help fund the 2026 state budget.

The US Securities and Exchange Commission-registered bond comprised five tranches amounting to US$1.1 billion, which was priced at 99.770% with a coupon of 4.35% to offer a yield of 4.40%. This is equivalent to a spread of 64.7 basis points ( bp ) over US treasuries and 30bp inside the initial price guidance in the 4.70% area.

The second tranche also amounted to US$1.1 billion for 10 years, which was priced at 99.602% with a coupon of 4.95% and a re-offer yield of 5%. This is equivalent to a spread of 82.7bp over the US treasuries and also 30bp inside of the initial marketing range of 5.30%.

The third tranche is a 30-year bond amounting to US$500 million, which was priced at 99.627% with a coupon of 5.475% to offer a yield of 5.50%. This represents a spread of 67.3bp over the US treasuries and likewise 30bp back of the initial price guidance in the 5.80% area.

Capitalizing on investor liquidity amid an increasingly challenging market backdrop and future prospects at the outset of the new year, the RoI announced during the Asia morning session on January 12 the initial price guidance for the triple-tranche offering. It successfully attracted global investor interest as the order book exceeded US$7.7 billion, enabling the sovereign to tighten pricing across all tenors.

This successful transaction underscores the continued strong support and confidence from the RoI’s global investor base – driven by economic fundamentals and consistent state budget performance – strengthening its position as a resilient and credible sovereign issuer.

ANZ, BofA Securities, Morgan Stanley, Natixis and Société Générale were the joint bookrunners for the transaction, while BNI Sekuritas, BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia acted as the domestic dealers.

The RoI was the most prolific sovereign issuer in Asia in 2025, accessing the bond market seven times during the year across G3 and local currencies. It tapped the sukuk market twice last year in July and November, raising a combined US$4.2 billion. As it shifted its focus on local currencies to diversify its funding sources and investor base, it priced its inaugural issuances in the Kangaroo and in offshore yuan bond markets.

In October last year, it printed its maiden Australian bond deal with an A$800 million ( US$536.9 million ) issuance, followed by its first offshore yuan transaction amounting to 6 billion yuan ( US$857.1 million ) – with both deals arranged in dual tranches.

And demonstrating its continuing commitment to sustainable financing, the RoI also priced in October a €600 million ( US$698 million ) Sustainable Development Goals ( SDG ) bond, along with a dual-tranche US dollar bond totalling US$1.85 billion.