The government set the PBS030 (7.1-year) (New Issue) fee of 5.875%. This figure is far below NHKSI Research’s projection of 6.35%, or equivalent to the yield of similar tenor Sukuk, namely PBS018 (6.9-years). In addition to low returns, the government is also selective in winning this new series of Sukuk, which only won IDR 350 billion (bid to cover ratio 20x), from the bid to enter this series which was almost IDR 7 trillion. The government’s selective attitude can also be seen from the overall results of yesterday’s Sukuk auction, in line with the fulfillment of the indicative target for the auction of Government Securities (SBN) for the 2Q21 period. In yesterday’s auction, the government only won IDR 11 trillion, out of a total bid of IDR 44.6 trillion.
Download full report HERE.
