JAKARTA. The Indonesian government is holding an auction of Sharia Government Securities (lit. Surat Berharga Syariah Negara/SBSN) or Government Sukuk today (17/5) with an indicative target of IDR 9 trillion.
This auction is held to help the government meeting the financing target set in the 2022 State Budget, as stated in the official announcement of the Directorate-General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance.
There are six series of sukuk to be offered to the public today. One series is a Sharia Treasury Notes (lit. Surat Perbendaharaan Negara-Syariah/SPN-S), while the other five are project-based sukuk (PBS). The SPN-S will be offered with a discount yield, while the PBSs will be equipped with a varying yield from 4% to 6.75%.
The auction is opened at 9 AM WIB and will end at 11 AM WIB. The result will be out as soon as today, while the settlement date follows on May 19, 2022.
The auction will be an open auction that implements a multiple price scheme. All interested parties may submit their bids in this auction. However, they must be placed through primary dealers with authorisation from the Ministry of Finance itself.
There are 18 parties listed as primary dealers in this auction, 13 of which are local and international banks, leaving the remaining 5 spots for security companies. (KR/ZH)