Government bond auction tops the target

JAKARTA: The auction of five government bond series successfully scooped IDR7.47 trillion or exceeded 6.4% indicative target, which was set by the government at IDR7 trillion.Total offer to the six bond series actually reached up to IDR28.27 trillion.Based on the auction result, the government only set five government bond series to be issued on July 21, namely SPN2011102, SPN20120706, FR0053, FR0058 and FR0057.The auction generated IDR7.45 trillion, which was firstly contributed from SPN20111020 that offered yield at 4.18% and raised IDR550 billion.Secondly, SPN20120706 with the yield of 5% was absorbed by the market for IDR900 billion. Third, FR0053 series with the yield of 7.3% raised IDR1.95 trillion.Fourth, FR0058 series whose yield was at 8.5% and coupon rate at 8.3% was able to absorb IDR3 trillion from the market.Fifth, FR0057 which offered 8.9% yield and 9.5% coupon rate contributed a total fund of IDR1.05 trillion, Of six series offered, Director of Governtment Bonds at Directorate General of Debt Management Bimantara Widyajala explained FR0055 series failed to absorb fund from the market since the required yield is dbeyond the benchmark yield. A bond analyst at BNI Securities Ariawan assessed the bid for the bond issuance showed an increase of investor's interest in local bond market, particularly government's securities."The market demand is quite large, ie exceeding the average bid auction which previously ranged SUN Rp18, 5 billion," he said.He is optimistic that the government will achieve the target of bond issuance which is set at IDR215 trillion in this year."Realization of the government bond issuance has reached 61.5% of target in this year, so the government is not difficult to reach the target," said Ariawan.Director General of Debt Management at Ministry of Finance Rahmat Waluyanto said investor interest in government bonds can not be separated from the conditions of global economic uncertainty and the stability of national macroeconomic conditions."Huge capital inflow floods Indonesian market. Investors are avoiding Europe and United States markets which are now experiencing fiscal and political crisis," said Rahmat.At a separate occasion, Chairman of Committee for Procurement at Directorate General of Debt Management at Ministry of Finance Wien Irwanto said the government has announced 25 prospective selling agents for marketing Indonesian retail bonds (ORI) of 008 series which will be published in October this year.Selling agentsThe 25 selling agents are Bank UOB Indonesia, Citibank N.A, PT ANZ Panin Bank, PT Bank Bukopin Tbk, PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, PT Bank Danamon Indonesia Tbk, PT Bank Internasional Indonesia Tbk, dan PT Bank Mega Tbk.The others are PT Bank Negara Indonesia Tbk, PT Bank OCBC NISP Tbk, PT Bank Panin Tbk, PT Bank Permata Tbk, PT Bank Rakyat Indonesia Tbk, PT Ciptadana Securities, PT Danareksa Sekuritas, and PT Kresna Graha Securindo,Besides, there are PT Lautandhana Securindo, PT Mega Capital Indonesia, PT Reliance Securities Tbk, PT Secorinvest Central Gani, PT Trimegah Securities Tbk, Standard Chartered Bank, and The Hongkong and Shanghai Banking Corporation Ltd. (T03/NOM)