Snapshot BII report - 01 July 2015

Results: Government Sukuk Bond Auction

Overview

Indonesian government conducted their sukuk auctions yesterday and received incoming bids of Rp3.87 tn bids versus its target issuance of Rp2.00 tn or oversubscribed by 1.9x. However, DMO only awarded Rp2.17 tn bids for its 6mo, 1y and 5y bonds. Incoming bids were mostly clustered on the front end tenors. 6mo SPN was sold at a weighted average yield (WAY) of 6.77919%, 1y PBS008 at 7.77997% while 5y PBS006 was sold at 8.52246%. PBS007 bid was rejected during the auction. Bid-to-cover ratio during the auction came in at 1.29X – 2.08X.

Aside from conducting the weekly auction, DMO also issued SDHI 2020 D through private placement of hajj funds worth of Rp1 tn. SDHI 2020 D pays an 8.20% fixed coupon with a tenor of 5y. SDHI 2020 D is a non tradable series.

Till the date of this report, Indonesian government has raised approx. Rp81.19 tn worth of debt through bond auction which represents 97.2% of the 2Q 15 target of Rp83.50 tn. On total, Indonesian government has raised approx. Rp295.3 tn worth of debt through domestic and global issuance which represent 65.4% of this year target of Rp451.8 tn.