JAKARTA (TheInsiderStories) – The Finance Ministry has sold Rp9 trillion worth of conventional bonds at an auction last Tuesday (Nov. 10). Total incoming bids were Rp13.68 trillion, the Finance Ministry announced.
The four bond auctions were for series SPN03160211 (new issuance), SPN12161111 (new issuance), FR0058 (reopening) and FR0072 (reopening). The auction was held through Bank Indonesia auction system.
The weighted average yield for the three-month t-bill (SPN03160211) was 6.34219 percent. The weighted average yields for 12-month t-bill (SPN12161111) was 7.22368 percent.
The weighted average yields for 11-years t-bill (SPN12161111) was 8.65374 percent and the weighted average yields for the 26-year t-bill (FR0072) was 9.06714 percent.
The highest bid-to-cover ratio was 1.84 for the 12-month T-bills.
Meanwhile, the government has targeted to raise Rp 2 trillion ($145 million) from Islamic bonds (SUKUK) issuance in an auction on Tuesday.
A series of four sukuk — one conventional sukuk and three project-based sukuk — will be offered by the government.
The conventional sukuk will mature May 4, 2016 and offers investors sale and leaseback agreements for underlying assets of land and building owned by the government.
The three remaining sukuk offer maturity dates in 2018, 2020 and 2023 and will be used to finance projects as yet unspecified by the finance ministry.
The sukuk issuance serves to diversify the investor base of the country’s debt markets. (*)