Foreign Investors are Interested in Long Tenors, at the second last auction in 2020. This can be seen from the increasingly competitive yields, with a decrease in the weighted average yield (WAY), both for the series FR0086, FR0087, FR0080 and FR0083 at the auction of Government Securities ) Last Tuesday. Meanwhile, this auction is the fourth highest throughout the 2020 current period. The euphoria of a number of market players on the results of vaccine trials and the results of the presidential election in the United States (US) had a positive impact on the auction, making incoming bids worth a total of IDR 104.7 trillion. This entry bid was up 57.6% from the previous auction, with the Bid to cover ratio also increasing from 2.24x to 4.26x.
Mandala Multifinance (MFIN) Issues IDR 315 Billion Bonds. Mandala Multifinance Tbk (MFIN) issues IDR 315 billion bonds, with short tenors. This bond is part of the Mandala Multifinance IV Sustainable Bond with a target fund of IDR 1.5 trillion. For this second phase, Mandala Finance offers two series of bonds that have an idA rating from Pefindo. Series A has a principal value of IDR 300 billion. The 370-day note offers a fixed interest rate of 9.20% per annum. Series B has a principal value of IDR 15 billion. The bonds, which have a 3-year tenor, offer an interest rate of 10% per year. The bond public offering period will take place on November 27 and 30 and December 1, 2020. The bond allotment date is December 2. Electronic bond distribution on December 4 and bond listing on the Indonesia Stock Exchange on December 7, 2020. (Kontan)
Indonesia Needs IDR 4,983.2 Trillion Investments. The Investment Coordinating Board (BKPM) stated that to achieve 6% economic growth, Indonesia needs an investment of IDR 4,983.2 trillion. This is in accordance with the Strategic Goals and Performance Indicators of the BKPM Strategic Plan for 2020-2024. The target comes from investment in the real sector including foreign investment (PMA) and domestic investment (PMDN) and does not include the financial sector, oil and gas and government investment. Meanwhile, the target amount in the next four years will increase to 47.3% of the 2015-2019 investment realization of IDR 3,381.9 trillion. In order to achieve the target in 2024, investment realization must be IDR 817.2 trillion, or IDR 858.5 trillion in 2021; in 2022 IDR 968.4 trillion; in 2023 IDR 1,088.8 trillion, and in 2024 worth IDR 1,239.3 trillion. (Investor Daily)
Market Participants Positive Response to Moderna Vaccine. Most SBN yields experienced a decline in yield yesterday. Yield on 10-year government securities fell 7 bps to 6.21%. This increase was in line with the good news of Moderna’s corona virus (Covid-19) vaccine, which was claimed to be effective in triggering the formation of antibodies in the test results of 94.5% of volunteers. Moderna is a US biotechnology company, which develops the Covid-19 vaccine on the same platform as the vaccines made by Pfizer and BioNTech that use RNA molecules. After yesterday’s SUN auction, investors could look back at the FR0086, FR0087, FR0080, and FR0083 in the short term.