The results of the auction of Government Securities (SUN) yesterday recorded total bids of up to IDR 42.9 trillion. This indicates an increase in demand for SUN compared to the previous auction. The highest bids were in the FR087 and FR083 series, reaching 53.6% of the total incoming bids. This increased interest was amidst lower weighted average yields compared to the previous SUN auction. The weighted average yield of FR0087 fell to 23 bps, and FR0083 fell by 16 bps, making the government win many of these two series. In this auction, the government managed to absorb IDR 24.2 trillion in funds.
Indosat Ready to Pay Bonds with Maturity of IDR 630 Billion. Indosat Tbk (ISAT) is ready to pay the Shelf Registration Bonds II Phase III 2018 series B. The principal value of the Shelf Registration Bonds II Phase III series B is IDR 630 billion. The bonds will mature on May 3, 2021. Meanwhile, the payment for the Continuous Bonds II Phase III 2018 series B will use funds from the available credit facilities that have not been withdrawn at this time, with a value of up to USD 750 million. Based on data from KSEI, the Continuous Bonds II Phase III 2018 Series B will pay interest of 7.4% per annum. Until the end of December 2020, Indosat had cash equivalent to IDR 1.78 trillion. However, ISAT on February 19, 2021 announced that it could cancel the issuance of PUB III worth IDR 4.62 trillion. (Kontan)
KUR Distribution Target Increased to IDR 253 Trillion. The Ministry of Cooperatives and SMEs (Kemenkop UKM) revealed that the 2021 target for the distribution of People’s Business Credit (KUR) will increase to IDR 253 trillion. Previously, this year’s KUR distribution target was set at IDR 220 trillion. In addition, the government also provided an additional stimulus for KUR interest subsidies during the Covid-19 period of 3% until June 30, 2021. In more detail, the realization of KUR distribution throughout 2020 amounted to IDR 197.04 trillion to 6.11 million debtors. That is equivalent to 103.7% of the initial target of IDR 190 trillion. (CNN Indonesia)
Green Shoe Option SUN with a Maximum Value of IDR 5.7 Trillion. The government is holding another SUN green shoe option auction today. The improvement in incoming and nominal bids won by the government is in line with the 10-year UST yield in the last week to two weeks. Therefore, the government will implement a green shoe option offering FR0086, FR0087, FR0088, FR0083, and FR0089 with each with a weighted average yield of 5.74%; 6.53%; 6.50%; 7.29%; and 7.08%.