JAKARTA. The Indonesian government will hold an auction of Government Sharia Securities (lit. Surat Berharga Syariah Negara/SBSN) or State Sukuk with an indicative target of IDR 7 trillion next Tuesday (9/8).
The sukuk to be auctioned off consists of Sharia Treasury Notes (lit. Surat Perbendaharaan Negara-Syariah/SPN-S) and Project-Based Sukuk (PBS). Both series were publicly offered to the market in order to meet the financing target set in the 2022 State Budget, as revealed by the Directorate-General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance.
The yield for one series of SPN-S is in the form of discount, while five series of PBS will be equipped with a yield ranging from 4% to 6.75%.
“The SBSN auction will be held using the auction system arranged by Bank Indonesia as the auctioning agent of SBSN. It will be an open auction and using a multiple price scheme,” as the DJPPR of the Ministry of Finance explained in the official announcement.
Based on idnfinancials.com data, the government had won IDR 5.87 trillion out of the total incoming bids of IDR 10.77 trillion in the most recent sukuk auction. Furthermore, it also absorbed another IDR 1.74 trillion from the extended sukuk auction on July 27, 2022. (KR/ZH)