Govt Sukuk Sale Again Falls Short as Investors Demand Higher Yields
Indonesian government sold Rp 246 billion ($27 million) of Islamic bonds on Tuesday, not even close to the Rp 1 trillion rupiah target. The government sold Rp 239 billion of 10.25 percent sukuk , or Islamic bonds, due in March 2030 to yield 9.94 percent, as well as Rp 7 billion of 10.25 percent notes maturing in January 2025 carrying a yield of 9.28 percent. Investors submitted bids totaling Rp 1.18 trillion for the notes on offer. The sale was a failure, however, because bidders demanded yields much higher than the benchmark. Investors sought returns as high as 10.75 percent for the notes due in 2030, and 10.84 percent for the securities due in 2025, according to the statement. (more…)
