Govt Eyes Rp 2t From Islamic Savings Bonds
Jakarta. The government plans to raise Rp 2 trillion ($153 million) from selling Islamic savings bonds later this month to plug a deficit in this year's state budget.
The government lowered the minimum purchase on the bonds to Rp 2 million, from normally Rp 5 million, to increase its appeal to investors, including young professionals and students. Unlike with other government bonds, savings bonds investors are required to hold on to the bonds until maturity.
Langgeng Basuki, head of Islamic bonds transaction at the Finance Ministry's debt management office, said investors can start buying the bonds from Aug. 22 to Sept. 2.
The Finance Ministry appointed Bank Mandiri, Bank Rakyat Indonesia, Bank Tabungan Negara, Bank Negara Indonesia, Bank Syariah Mandiri, Bank Muamalat, Bank BRI Syariah, Bank OCB CNISP, HSBC, Bank CIMB Niaga, Bank Central Asia, Bank Permata, Bank Pan Indonesia, Maybank Indonesia, ANZ Indonesia, DBS Indonesia, Standard Chartered, Citibank, Bank Danamon Indonesia and Bank Mega as selling agents for the bond issuance.
Six securities, including Danareksa Sekuritas, Trimegah Sekuritas, MNC Sekuritas, Sucorinvest Central Gani, Bahana Sekuritas and Mega Capital Indonesia would also be selling the bonds.
This is the first time the government is selling savings bonds that comply with Islamic law, after raising Rp 2.4 trillion in 2014 and Rp 3 trillion last April from selling saving bonds under conventional rules.
Finance Minister Sri Mulyani Indrawati said earlier this month that the government needs to raise an additional Rp 17 trillion from debts this year, as tax revenue shortfall is set to widen deficit to 2.5 percent of GDP from the targeted 2.35 percent in the 2016 revised budget.
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