To fulfill the financing target in the 2022 State Budget, the Government will hold an auction of State Sharia Securities (SBSN) or State Sukuk on Tuesday (28/6/2022) tomorrow.
Based on data from the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, Monday (27/6/2022) the series to be auctioned are 1 series of Sharia-State Treasury Letters (SPN-S) and 5 series of Project-Based Sukuk (PBS).
The series are SPN-S 13122022 (reopening), PBS031 (reopening), PBS032 (reopening), PBS030 (reopening), PBS029 (reopening), and PBS033 (reopening).
The indicative target of the Sukuk auction on 28 June 2022 is set at IDR 9 trillion. Meanwhile, the government allocated non-competitive purchases of 50 percent of the amount won for the SPN-S series and 30 percent of the amount won for the PBS series.
The auction opens on Tuesday (28/6/2022) at 09.00 WIB and closes at 11.00 WIB. The settlement will be carried out on 30 June 2022 or 2 working days after the auction date (T+2).
The SBSN auction will be conducted using an auction system organized by Bank Indonesia as the SBSN Auction Agent. Auctions are open and use multiple pricing methods.
All parties, both individual and institutional investors, can submit a purchase offer in an 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.
Main SBSN dealers, Bank Indonesia, and the Deposit Insurance Corporation may submit SBSN auction offers by referring to the provisions of the Minister of Finance Regulation Number 195/PMK.08/2020 concerning the Auction of State Sharia Securities in the Domestic Primary Market and the Minister of Finance Regulation Number 38/PMK. 02/2020.
The auction winner who submits a competitive bid will pay according to the submitted yield. Auction winners who submit non-competitive bids will pay according to the weighted average yield of the declared winning competitive bids.
The government has the right to sell the SBSN series for a larger or smaller than the specified indicative target.
The following is the amount of coupons and maturity of each series that will be auctioned:
State-Sharia Treasury Letter SPN-S series 13122022 (Discount; December 13, 2022)
Project-Based Sukuk PBS031 (4 percent; 8 March 2022)
Project-Based Sukuk PBS032 (4.875 percent; 15 July 2026)
Project-Based Sukuk PBS029 (6.37500 percent; 15 March 2034)
Project-Based Sukuk PBS030 (5.8750 percent; 15 July 2028)
Project-Based Sukuk PBS033 (6.75000 percent; 15 June 2047)