Ministry of Finance of Republic of Indonesia : Government Offers Sukuk of IDR4 Trillion

Jakarta, 22/01/2016 MoF - The government is going to auction five series of Sharia Securities/Sukuk on Tuesday (26/1). Indicative target for the auction that will be used to meet part of financing target in the State Budget 2016 is IDR4 trillion.

The fifth series to be auctioned are SPN-S 13072016 (reopening), PBS006 (reopening), PBS009 (reopening), PBS011 (reopening), dan PBS0012 (new issuance). The auction will be opened on 26 January 2016 at 10.00 LT and closed at 12.00 LT. Meanwhile, the result will be announced on the same day and the settlement will be made on 28 January 2016.

In detail, SPN-S 13072016 will mature on 13 July 2016 and offers discounted yield. It is using ijarah sale contract and lease back, the underlying asset of State Property in the form of land and buildings.

Meanwhile, PBS006 series will mature on 15 September 2020 and offers yield of 8.25 percent. PBS009 series will mature on 25 January 2018 and offers yield of 7.75 percent. PBS011 series offers yield of 8.75 percent with maturity date on 15 August 2023. Lastly, PBS012 series will mature on 15 November 2021, and offers a fixed rate yield.

The four series are using ijarah contract asset to be leased with the underlying asset of the project/activity in the State Budget 2016.

In its official statement, the Directorate General of Debt and Risk Management reveals that this is an open auction with multiple price method. In principal, all parties both individual and institutional can submit their bids. However, in practice, the bids should be submitted via bidders authorized by the Ministry of Finance. (nv)