May 23, 2017 / 8:47 AM / 3 months ago

Indonesia sells $1.05 bln of bonds, more than targeted, after S&P upgrade

JAKARTA, May 23 (Reuters) - Indonesia sold 14 trillion rupiah ($1.05 billion) of bonds, above the indicative target of 12 trillion rupiah, at the first auction after Standard & Poor's (S&P) upgraded Indonesia's sovereign bond ratings to investment grade, the finance ministry's financing and risk management office said on Tuesday.

S&P upgraded Indonesia to investment grade on Friday, sending Jakarta shares and government bond prices rising.

The other two main rating agencies, Fitch and Moody's, upgraded Indonesia to investment grade more than five years earlier.

The government sold t-bills maturing in August 2017 with a weighted average yield of 4.95988 percent, lower than 4.97260 percent at the last auction on May 9.

The T-bills maturing in February 2018 had a weighted average yield of 5.60900 percent.

The weighted average yield for bonds maturing in May 2027 was 6.92116 percent.

The bonds maturing in August 2032 had a weighted average yield of 7.35253 percent, lower than previous auction's 7.52402 percent.

Tuesday's weighted average yield for bonds maturing in May 2036 was 7.57683 percent, lower than 7.82987 percent from the May 9's auction.

Total incoming bids were 43.87 trillion rupiah, nearly double the 24.19 trillion rupiah received at the last auction.

The highest bid-to-cover ratio was 4.46 for the bonds maturing in May 2027.

Fund managers say the investment grade from S&P will give Indonesia access to a wider pool of investors. ($1 = 13,303 rupiah) (Reporting by Nilufar Rizki; Editing by Richard Borsuk)

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