Govt to auction Rp1 trillion Islamic bonds

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Jakarta (ANTARA News) – The Indonesian government plans to auction Islamic bonds (sukuk) worth Rp1 trillion on November 26 to meet part of its financing target in the 2013 state budget.

The bonds up for the auction will consist of series SPN-S27052014 which is new issue and series PBS004, PBS005 and PBS006 which are reopening of existing issues, the Directorate General of Debt Management at the Finance Ministry said in a press statement released on Wednesday.

The series SPN-S27052014 due on May 27, 2014 will be issued at a discount yield and use state land and buildings as underlying assets.

The series PBS004 due on February 15, 2037 will be issued at a yield of 6.10 percent, the series PBS005 due on April 15, 2043 at a yield of 6.75 percent, and the series PBS006 due on September 15, 2020 at a yield of 8.25 percent.

The underlying assets used for the issuance of the project-based sukuk will come in the form of projects and activities in the 2013 state budget, the statement said.

The four series of sharia-compliant bonds will be put to an open auction using a multiple price method.

The statement said the government has the right to sell the four series of sukuk at higher or lower prices than the indicative target.