Menu
idnbonds

Sukuk Auction Oversubscribed 5 Times

By administrator | July 22, 2020 | Finance.
Sukuk Auction Oversubscribed 5 Times
Illustration: Sukuk Auction Oversubscribed 5 Times

Sukuk Auction Oversubscribed 5 Times. Domestic investors are still dominant in the state sukuk auction or state sharia securities which took place on Tuesday (07/21). Directorate of Sharia Financing The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance (MoF) reports the results of the auction.

As well as state sharia securities (SBSN) series of state-sharia treasury (SPN-S) and project-based sukuk (PBS) series. The government reported PBS002 series with a reward rate of 5.45% and maturing January 15, 2022 became the main target in the auction. The incoming offer for the series reached IDR 14.88 trillion.

The next series that became the target was PBS028 with a reward rate of 7.75% and due on October 15, 2046. The incoming bids for the series were worth IDR 10.33 trillion and IDR 5.25 trillion won by the government. Overall, total requests that entered the auction were worth IDR 40.20 trillion.

The number of bids entered is equivalent to 5 times the indicative target of IDR 8 trillion. High interest makes the government absorb bids as much as IDR 11 trillion or 137% of the indicative target. The dominant domestic investor in the state sukuk auction this time. This is reflected in the offers that come from investors.

Domestic Investor in Sukuk Auction

Sukuk Auction Oversubscribed 5 Times
Illustration: Sukuk Auction Oversubscribed 5 Times

Short tenor sukuk are in demand by domestic banks to take advantage of the availability of liquidity. In contrast, domestic investors with long durations are pursuing sukuk with long tenors such as PBS028. Long term investment duration such as insurance and pension funds. They are chasing yields from long-term sukuk.

Conventional and sharia state securities (SBN) instruments are still the choice today. Both of the volatility levels are lower compared to other instruments. Meanwhile, the government reported PBS002 series with a reward rate of 5.45% and maturing January 15, 2022 became the main target in the auction.

The incoming offer for the series reached IDR 14.88 trillion. For the PBS002 series, the government won IDR 2.35 trillion. Weighted average yields were won at 5.00%. The next series that became the target was PBS028 with a reward rate of 7.750% and maturing on October 15, 2046. The incoming bids for the series were worth IDR 10.33 trillion and IDR 5.25 trillion won by the government.

Overall, the total bids included in the sukuk auction were worth IDR 40.20 trillion. The total nominal won by the government from the six series offered is worth IDR 11 trillion. Meanwhile, the total nominal won by the government exceeds the indicative target of IDR 8 trillion. In the previous state sukuk auction, the government absorbed IDR 9.5 trillion.

Translate ยป
Copy Protected by Chetan's WP-Copyprotect.