Commonwealth Bank Confident The Sales Of SBR012 Are Higher Than Previous SBR

Illustration. (Photo: Doc. Antara)

JAKARTA - Commonwealth Bank was selected by the Ministry of Finance as a distribution partner for SBR012, the first retail Government Securities (SBN) this year. Commonwealth Bank Head of Investment Business Daniel Arifin believes the SBR012 will score higher sales figures than the previous SBR series.

"When SBR012 was issued on the primary market, the coupons offered were higher than the average deposit interest rate, as well as floating with floor coupons which were a distinct advantage and suitable amid the current trend of rising interest rates," said Daniel in an official statement, quoted, Wednesday 25 January.

He added that, unlike the previous series of retail SBN, SBR012 has two tenor options, namely two years (SBR012-T2) and four years (SBR012-T4).

SBR012 is offered with a floating coupon (floating with floor) and refers to the BI 7 Days Reverse Repo Rate, which means that the coupon amount will be adjusted to changes in the BI 7 Days Reverse Repo Rate every three months, where the minimum coupon size for SBR012-T2 is 6, 15 percent and the minimum coupon rate for SBR012-T4 is 6.35 percent.

He added, the SBR012 investment has various advantages, including being safe because it is 100 percent guaranteed by the state, attractive coupon rates, affordable because it can start from just IDR 1,000,000, and practically ordering through the wealth management application CommBank SmartWealth. Another advantage is that there is an early redemption facility that allows investors to receive partial redemption of SBR012-T2 and SBR012-T4 before maturity.

"Apart from that, what makes SBR012 interesting and different from the previous ones is that there are two tenor options, so that investors can adjust to their respective risk profiles and financial goals," he added.

In the midst of uncertainty in 2023, he continued, investments in fixed-income asset classes such as government bonds are relatively safer because they have a lower level of risk but still have the potential to provide attractive returns.

"To attract investors, Commonwealth Bank offers cashback of up to IDR 30 million for purchasing SBR012 through CommBank SmartWealth. The program is valid during the SBR012 offering period," he concluded.