Tuesday, Jun 26, 2012
By Andreas Ismar
JAKARTA--Indonesia on Tuesday raised 655 billion rupiah ($69 million) from a sale of Islamic bonds, or sukuk, but failed to meet its target for the third auction in a row.
The government had planned to raise IDR1 trillion in the auction. In the previous auction June 12, the government raised IDR800 billion out of the IDR1 trillion it was targeting.
Tuesday's auction also attracted fewer bids, at IDR1.59 trillion against IDR2.26 trillion.
The government only sold one tranche of the Islamic bonds: a six-year sukuk at a weighted average yield of 5.91%, the Ministry of Finance said, slightly lower than 5.92% yield in the previous auction.
The ministry rejected bids for the 10-, 15-, and 25-year Islamic bonds offered in the auction, but didn't say why.
Analysts said the sukuk market in the country still has thin volumes and is significantly less liquid than conventional debt markets, which pushes up the premiums demanded by investors.
Write to Andreas Ismar at andreasismar.sandiwan@dowjones.com
(END) Dow Jones Newswires
26-06-12 1030GMT
