Wednesday, May 6, 2015

Snapshot BII Report - 5 May 2015

Results: Government Sukuk Bond Auction

Overview

Indonesian government conducted their sukuk auctions yesterday and received incoming bids of Rp3.60 tn bids versus its target issuance of Rp2.00 tn or oversubscribed by 1.8x. However, DMO only awarded Rp1.96 tn bids for its 5mo, 1y, 5y and 26y bonds. Incoming bids were mostly clustered on the front end tenors. 5mo SPN-S was sold at a weighted average yield (WAY) of 5.91406%, 1y PBS008 at 7.38914%, 5y PBS006 at 7.81818% while 26y PBS007 was sold at 8.44932%. No bids were rejected during the auction. Bid-to-cover ratio on today’s auction came in at 1.05X – 3.30X.

Till the date of this report, Indonesian government has raised approx. Rp20.13 tn worth of debt through bond auction which represents 24.1% of the 2Q 15 target of Rp83.50 tn. On total, Indonesian government has raised approx. Rp200.2 tn worth of debt through domestic and global issuance which represent 44.3% of this year target of Rp451.8 tn.

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