FINANCE MINISTRY TO AUCTION STATE SYARIAH SECURITIES

Jakarta, Oct 6 (ANTARA) - The Ministry of Finance will be selling two series of syariah securities worth Rp1.5 trillion on October 13, 2009.

Finance ministry spokesman Harry Z. Soeartin said in Jakarta Monday the purpose of the sale of the state syariah securities was to meet part of the financing projections in the 2009 State Budget.

The two series will be syariah securities to be sold on Tuesday, namely IFR0003, with a 6-year tenor and payable on September 15, 2015, and IFR0004 with an 11-year tenor and payable on September 15, 2020.

The sale of the two series of syariah securities by auction would be the very first, and the issuance of syariah securities by auction was considered more effective than the bookbuilding method, which needs about 3 months.

The participants of the auction as determined by the finance ministry included Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Permata, Bank Panin, HSBC, Bank OCBC NISP, Standard Chartered Bank, Bank CIMB Niaga, Bank Internasional Indonesia (BII), Danareksa Sekuritas, Mandiri Sekuritas, Trimegah Sekuritas, and Bahan Securities.

The issuance of the syariah securities by auction will use underlying assets which are state-owned assets with the green light of the House of Representatives on August 31, 2009, and had met the requirements under Article 2 para 3 of Decree of the Minister of Finance No 04/PMK.8/2009 on the Management of State Syariah Securities from state-owned assets.