Govt To Auction Rp10 Tln Worth Bonds On September 16

Jakarta, Sept 12 (Antara) - The Indonesian government will auction the indicative Rp10 trillion worth state bonds on September 16, 2014. The Finance Ministry`s spokesman Yudi Pramadi stated in a press release made available to Antara here on Friday that the sale of state bonds through auction was to achieve half of the financial target set in the revised 2014 budget. The state bonds to be auctioned include Rp1 million nominal per unit and five series, including SPN12150710 (repurchase agreement), with discount payable accrued interest and average maturity on July 10, 2015, and SPN12150903 (repurchase agreement), with discount payable accrued interest and average maturity on September 3, 2015. The other state bonds include FR0069 series (repurchase agreement), with fixed interest rate nearly 7.88 percent and average maturity on April 15, 2019, FR0070 (repurchase agreement), with fixed interest rate nearly 8.38 percent and average maturity on March 15, 2024. Also, the state bonds to be auctioned are the FR0068 series (repurchase agreement), with fixed interest rate nearly 8.38 percent and average maturity on March 15, 2034. The state bonds auction will be held publicly by Bank Indonesia--central bank of Indonesia--using multiple price method. The auction`s winner, who offers competitive bids, will pay the price as the submitted yield. However, the government has the right to sell the five series of the state bonds higher or lower than the specified indicative nominal. According to the Finance Minister Regulation No. 43/PMK.08/2013 on the State Bonds Auction in rupiah and foreign exchanges on the domestic main market, the auction of SPN12150710 and SPN12150903 state bods will be participated by main dealers through the competitive bids offer, as well as the Bank Indonesia and the Deposit Insurance Agency (LPS) through non-competitive bids. The auction of FR0069, FR0070, and FR0068 state bonds will be participated by the main dealers who submit the bids for and on behalf of other parties, besides Bank Indonesia and LPS, through competitive and/or non-competitive bids. The LPS will take part by offering non-competitive bids. The main dealers who submit the bids for themselves and/or through other bidders can only offer competitive bids.