Additional auction (green shoe option) Government Bonds (SUN) series FR0086, FR0087, FR0088, FR0083, and FR0089, successfully recorded incoming bids worth a total of IDR 16.5 trillion. The auction, which was held on Wednesday, won all five series worth IDR 15.5 trillion. Meanwhile, FR0088 recorded the highest incoming bids valued at IDR 4.3 trillion. The series that will mature on June 15, 2036 was won with a value of IDR 3.8 trillion. The second highest bid entry, 30-year tenor FR0089, posted bids worth IDR 4.2 trillion and IDR 3.7 trillion won. For the record, this green shoe option auction is ahead of the inauguration of the President of the United States (US) elected Joe Biden on Wednesday (20/01) local time. Yesterday, market players also scrutinized the details of the stimulus prepared by Biden, which was worth USD 1.9 trillion, amid a potential increase in US government debt.
PLN Ready to Pay Bonds. The State Electricity Company (Persero) (PLN) will pay off its maturing bonds this year using internal cash. Meanwhile, the company is paying attention to market potential for possible funding needs. PLN has one sustainable bond which will mature in June 2021 amounting to IDR 865 billion. In addition, the current condition of the bond market is in a low rate environment trend, thus providing great opportunities for PLN. On the other hand, the low interest trend also provides a great opportunity for publishers to be able to provide lower coupons. (Bisnis Indonesia)
Realization of Sukuk Fund Infrastructure Projects Reach 94.5%. Issuance of State Sharia Securities (SBSN) or Sukuk at the Ministry of Public Works and Public Housing (PUPR) began in 2015. In FY 2020 the Ministry of PUPR received an allocation of IDR 7.6 SBSN funds trillion with project realization reaching 94.5%. This is the second highest achievement among 8 other Ministries / Agencies implementing the SBSN Project. The PUPR Ministry of PUPR’s SBSN financing continues to increase every year from IDR 3.5 trillion in 2015 to IDR 15.1 trillion in 2020. However, due to the COVID-19 pandemic there are budget savings so that the SBSN funds in the Ministry of PUPR become IDR 7.61 trillion. (Kontan)
Biden Government’s Optimism. Yesterday, the yield on 10-year government securities fell 1.7 bps to 6.28%. A number of market players have the opportunity to respond positively to the sentiment of Biden’s inauguration. After the inauguration, the US elected president immediately joined the Paris climate agreement. Biden also immediately ordered his cabinet to act to provide economic assistance for families affected by the crisis due to Covid-19. In addition, Biden will also distribute a fiscal stimulus of USD 1.9 trillion. For the record, the US government distributed the first fiscal stimulus due to the Covid-19 pandemic worth USD 2 trillion, in March 2020. The stimulus was one of the triggers for the rise of the US stock market to break an all-time high.