JAKARTA - The government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance (Kemenkeu) is preparing to conduct an auction of State Sharia Securities (SBSN) or state sukuk next week, Tuesday, July 27 2021 with an indicative target of Rp12 trillion.
Citing information on the DJPPR website, the institution led by Sri Mulyani plans to use the collected funds to fulfill the financing target in the 2021 State Budget (APBN).
It is stated that there are six series that will be auctioned. First, SPN-S 14012022 which matures on January 14, 2022 with a discount.
Second, PBS031 matures on July 15, 2024 with undetermined benefits. Three, PBS032 matures on July 15, 2026 with undetermined benefits.
Four, PBS030 which matures on July 15, 2028 with a return of 5.87 percent. Five, PBS029 will mature on March 15, 2044 with a 6.37 percent return.
And the sixth is the Series of State Sharia Securities coded PBS028 which will mature on October 15, 2046 with a reward of 7.75 percent.
Auction opens on Tuesday 27 July 2021 at 09.00 WIB and closes at 11.00 WIB. Auction results will be announced on the same day. Settlement will be carried out on 29 July 2021 or 2 working days after the auction date.
“The SBSN auction will be conducted using an auction system organized by Bank Indonesia as the SBSN Auction Agent. The auction is open (open auction) and uses multiple price methods," wrote the DJPPR announcement as quoted on Wednesday, July 21.
In principle, all parties, both individual and institutional investors, can submit bids in the auction. However, in practice, the submission of the purchase offer must go through the main dealer who has received approval from the Ministry of Finance.
“The auction winner who submits a competitive bid will pay according to the submitted yield. The auction winner who submits a non-competitive bid will pay according to the weighted average yield of the declared winning competitive bid. The government has the right to sell the SBSN series which are larger or smaller than the specified indicative target,” explained DJPPR.
Meanwhile, the underlying assets for the issuance of the SPN-S series use state-owned goods that have obtained the approval of the DPR RI. Meanwhile, the underlying assets for the issuance of the PBS series use projects/activities in the 2021 APBN which have also received parliamentary approval.
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