TEMPO.CO, Jakarta - The government will auction off government bonds (SUN) on Tuesday, April 26, 2016, with an indicative target of Rp12 trillion (US$909 million) and a maximum target of Rp18 trillion (US$1.3 billion).
The government bonds to be auctioned off consist of one SPN and four FR series. The SPN series will due on January 6, 2017 with a discount coupon rate. Meanwhile, FR0053 will due on July 15, 2021 with a coupon rate of 8.25 percent.
FR0056, FR0072 and FR0067 will due on September 15, 2026, May 15, 2036, and February 15, 2044, respectively, with coupon rates ranging from 8.25 percent to 8.75 percent.
The maximum non-competitive purchase allocation of the SPN is set at 50 percent, while those for FR series are set at 30 percent. The open auction will be conducted with BI’s auction system.
The auction will use a multiple price method. Winners of the auction that offer competitive purchases will pay based on the proposed yield. Meanwhile, winners of the auction that offer non-competitive purchases will make payments based on the weighted average yield of the competitive purchase offer.
The government retains the right to sell the five government bonds series above or below the indicative amount. The nominal value of the auctioned bonds is set at Rp1 million per unit.
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