Tuesday, Jun 12, 2012
By Andreas Ismar
JAKARTA--Indonesia raised 800 billion rupiah ($85 million) earlier Tuesday via an auction of Islamic bonds, or sukuk, the Ministry of Finance said.
The amount was below its IDR1 trillion target.
The auction attracted IDR2.26 trillion of bids, higher than the IDR1.42 trillion at the previous sukuk auction on May 22 during which ministry raised a paltry IDR550 billion.
Only one out of the five tranches offered at Tuesday's auction was sold: IDR800 billion of the six-year sukuk at a weighted average yield of 5.92%, lower than 6.14% on May 22.
The ministry didn't say why it declined to sell all that was on offer, but according to dealers its refusal to sell was a signal that it wants lower yields from participants and is confident it can get them.
The proceeds from the sale will be used to help plug the country's budget deficit.
Write to Andreas Ismar at andreasismar.sandiwan@dowjones.com
(END) Dow Jones Newswires
12-06-12 1018GMT
