The government won all incoming bids for PBS027, PBS017, and PBS028, as they offered weighted average yields of 4.81% each; 5.73%; and 7.23%. The yield was 4 bps to 9 bps lower than the previous Sukuk auction, which was able to reduce the cost of funds for the government. For the record, the three series recorded a Bid to Cover Ratio (BTC) each of 1x. On the other hand, the weighted average yield of PBS004 is still relatively high at 6.67%, making the government again selective in winning this 15.8-year Sukuk. Overall, the total bid for the additional Sukuk auction (Green Shoe Option) yesterday was worth a total of IDR 3.41 trillion, with a nominal won of IDR 2.63 trillion. Meanwhile, this auction received positive sentiment from BI’s decision to keep the BI 7-DRRR benchmark interest rate low at 3.50%.
Download full report HERE.