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Government absorbs Rp 6.01t from sukuk sales
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Financial Services Authority commissioner Sardjito (left) speaks to reporters regarding the need for state-owned enterprises to look into sukuk as alternative financing for infrastructure projects. (JP/Anton Hermanto)
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n a move to seek financing earlier this year, the government has collected Rp 6.01 trillion (US$450 million) in funds from five project-based sukuk (Islamic bond) series.
The government gained the funds on Tuesday from total incoming bids of Rp 10.3 trillion after it offered five sukuk series with maturity ranging from three months to 14 years.
The Rp 6.01 trillion funds the government collected exceeded the Rp 6 trillion indicative target. Some of this will be used to achieve the financing target in the 2017 state budget.
(Read also: Government mulls financial options for LRT projects)
“The amount gained in the SPNS08082017 [three-month treasury sukuk] reached Rp 2.5 trillion with a weighted average yield of 5.5 percent plus discounts,” the Finance Ministry’s directorate general of financing and risk management wrote in a statement on Tuesday.
The incoming bids for the three-month treasury sukuk totaled Rp 4.53 trillion, the highest of the series. The treasury sukuk will mature on Aug. 8 with yields ranging between 5.3 percent and 6.5 percent.
Meanwhile, the lowest incoming bid, at Rp 500 billion, was seen for the four year-tenor PBS014 project-based sukuk that matures on May 15, 2021. Investors asked for yields ranging from 7.4 percent to 7.59 percent for the PBS014 series.
The government did not receive incoming bids for the 14-year PBS012 project-based sukuk maturing on Nov. 15, 2031. Investors asked for lowest and highest yields of 8.31 percent and 8.4 percent respectively for the PBS012 series. (bbn)
