Jakarta. The government raised Rp 2.58 trillion ($196 million) from selling its first non-tradable sharia-compliant savings bonds for retail domestic investors, exceeding its own target of Rp 2 trillion, a director general at the finance ministry said on Monday (05/09).
The bond sale is part of the government’s move to expand its investor base — with an aim to get more individual investors — and help fund projects listed in the state budget, Robert Pakpahan, the director general of debt and risk management at the finance ministry said.
The successful sale of the Islamic savings bonds suggests the government managed to offer attractive returns to retail investors.
The government marketed the bond on Aug. 18-22, with some government projects serving as underlying assets.
The debt papers, coded ST-001, were sold to 11,388 investors, offering 6.9 percent coupon rate per year, with 2-year tenor. The securities are not tradable.
As a comparison for investment return, commercial lenders on average offer about 6.38 percent for a one-year time deposit.
Indonesia has raised up to Rp 533.8 trillion worth of sovereign bonds by the end of August, nearly 30 percent of which comes from sharia-compliant debt papers, Reuters reported on Monday.
Robert also said the government will sell around Rp 20 trillion tradable retail conventional bonds later this month.