Based on data from the Directorate General of Financing and Risk Management (DJPPR). Yesterday’s auction results, the government recorded an incoming bid of IDR 23.3 trillion. This second sukuk auction in 2021 offers a total of six series consisting of 1 Sharia State Treasury Bills (SPNS) and five Project Based Sukuk (PBS). Meanwhile, the highest bid was for the PBS028 series, which will mature on October 15, 2046, valued at IDR 6.1 trillion. Of the bids for this series, the weighted average yield was 7.04% with a nominal value of IDR 1.7 trillion. Meanwhile, the total nominal value won from the six series offered is IDR 9 trillion, or is below the indicative target set by the government of IDR 14 trillion.

Ciputra Development Offers Global Bond. Ciputra Development Tbk (CTRA) determines the value of global bonds issuance of SGD 100 million or the equivalent of IDR 1 trillion, with a coupon of 6% and matures on February 2, 2026. The debt securities are Part of the company’s global medium term notes (MTN) program worth a total of SGD 400 million is targeted to be issued on February 2, 2021. Proceeds from the debt securities issuance will be used to refinance loans or working capital for general purposes. This includes refinancing senior notes of SGD 150 million with an interest rate of 4.85% due in 2021. The international rating agency, Fitch Ratings, has assigned a B + rating with a recovery rating of RR4 for the new notes to be issued by Ciputra Development. (Investor Daily)

BKPM Submits Revised Tax Holiday. The Investment Coordinating Board (BKPM) will submit a revision of tax holiday regulations to the Ministry of Finance (Kemenkeu). BKPM assesses that the time limit for investors to get incentives until the incentives is realized is too loose.
For the record, the current tax holiday regulations have comprehensively and clearly regulates, starting from the criteria and requirements for obtaining facilities to the conditions that can cause the facility to be revoked. The specificity of the investment commitment period has also been regulated in detail, namely the investor should start investing no later than one year after the facility is granted. (Kontan)

The Government Is Again Implementing Green Shoe Option Sukuk. The government today again auctioned five additional series of State Sharia Securities (SBSN) (green shoe option). Meanwhile, this green shoe option is a follow-up to yesterday’s Sukuk auction, which recorded a value below the target. The five series are PBS027, PBS017, PBS029, PBS004, and PBS028, with a settlement date of January 28, 2021. Meanwhile, the five series are offered with each weighted average yield at the level of 4.61%; 5.44%; 6.56%; 6.62%; and 7.04%.