Government securities worth Rp6 trillion to be auctioned

16 March, 2012 | Source: ANTARA News

Jakarta (ANTARA News) - The Indonesian government will sell government securities with an indicative amount of Rp6 trillion, in an auction on March 20 to meet part of the national budget financing target in 2012.

Head of Communications and Information Services Ministry of Finance, Yudi Pramadi, said in a press release here on Friday that the securities or bonds sale will be implemented using the auction system organized by the central bank, Bank of Indonesia. The auction will be open using a variety of pricing methods.

There are five series of securities to be auctioned; the SPN03120621 series (new issuance) with a discount and interest payments due on June 21, 2012, the SPN12130307 series (resale) with the discount and interest payment due on March 7, 2013.

Others are FR0060 series (resale) with a fixed interest rate of 6.25 percent and maturing on 15 April 2017 with coupon payment to be done every April 15 and October 15, FR0061 series (resale) with a 7.00 percent fixed rate and maturing May 15, 2022 with coupon payments to be made each May 15 and 15 November and FR0058 (resale) with a fixed rate of 8.25 percent and maturing on June 15, 2032 and coupon payments to be made every June 15 and December 15.

The winning bidder submitting non-competitive bids will pay according to the average yield of the competitive bids won. The total non-competitive allocation for two SUN series of SPN03120621 and SPN12130307 is the maximum rate of 30 percent of the indicative target.

The non-competitive allocation for FR0060, FR0061, and FR0058 series is each set at the maximum of 20 percent of the winning total.

The government has the right to sell the five series of securities higher or lower than the indicative amount.

In accordance with Regulation of the Minister of Finance Number 50/PMK.08/2008 about Auction of Government Securities in the Primary Market, the SPN auction series SPN03120621 and SPN 12130307 is participated by the Primary Dealers by submitting competitive bids, as well as Bank Indonesia and the Deposit Insurance Corporation (LPS) with submitting non-competitive bids.

Auction of the FRO60 series, FR0061, and FR0058 state bonds is participated in by the Primary Dealers to submit purchasing offer for and on behalf of parties other than Bank Indonesia and the LPS by competitive and / or non-competitive manner.

The LPS can participate in the auction by submitting a non-competitive bid. The Primary Dealer for the purchase of securities bid for and on behalf of it and or through other bidders can only bid in a competitive manner.

 

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