ASEAN KEY DESTINATIONS
Sales of government retail bonds surpass Rp 21 trillion
The government raised Rp 21.22 trillion (US$1.76 billion) from the sales of its 11th retail bond (ORI011) as the high-yield debt papers attracted ever more individual investors, the Finance Ministry said on Monday.
Robert Pakpahan, the Ministry’s director general for debt management, said the final bids reached Rp 21.3 trillion. However, the government closed the bidding at Rp 21.22 trillion — the amount required in the 2014 revised state budget.
“Total sales have surpassed our indicative target of Rp 20 trillion. We are pleased and proud with the result because domestic retail investors have dominated the number of buyers,” he said.
According to Robert, the high demand demonstrated the increased attraction to domestic investors — a trend which highlights that ordinary citizens can contribute to the country’s development funding through bond purchases.
The three-year bonds offered a 8.5 percent yield paid monthly starting on Nov. 15.
The government had set the retail bonds’ bid period from Oct. 1 to Oct. 16, while the allotting date was Oct. 20.
Robert added that of the 35,024 investors who purchased the bonds in 34 provinces, 39.8 percent lived in Jakarta and the majority of them were entrepreneurs and private employees.
Outside Jakarta, he said around 50.4 percent of the investors lived in the western part of the country and 9.9 percent in the central and eastern regions.
He said further that 20,418 of the total were first-time investors, who accounted for 34.4 percent of those who purchased bonds of an average value between Rp 100 million and Rp 500 million.
In terms of age, Robert said 72.9 percent of the investors were over 40 and they purchased bonds worth Rp 15.6 trillion, or 73.93 percent of the total sales.
The minimum order for ORI011 was Rp 5 million and its multiples up to Rp 3 billion, with the coupon payment due on the 15th day of every month.
“Out of 21 appointed sales agents, 20 have succeeded in selling above their targets,” Robert added.
The 21 appointed sales agents comprised 18 banks, namely Citibank, ANZ, Bukopin, BCA, CIMB Niaga, Danamon, DBS, BII, Mandiri, BNI, OCBC NISP, Panin, Permata, BRI, BTN, UOB, Standard Chartered and HSBC; and three securities firms; Danareksa Sekuritas, Trimegah Securities and Sucorinvest Central Gani.
Also on Monday, state lender BNI executive vice president of customer management and marketing, Purnomo B. Soetadi, said ORI011 purchases by his bank’s customers had reached its allocation of Rp 2.6 trillion.
“This time, there was equal demand from all of our customer segments, namely the upper-mass, affluent and Emerald Banking [BNI’s priority banking division],” he told The Jakarta Post.
Above-target sales of ORI011 were also achieved by OCBC NISP, which had succeeded in selling all of its allocation of Rp 2.1 trillion, according to Ka Jit, the bank’s senior corporate executive for the consumer banking division.
Previously, Finance Minister Chatib Basri said 2014 was a historic year because the amount of bonds or treasury notes (SBN) amounted to gross values of Rp 430 trillion, in accordance with the country’s continuously growing state budget. (gda)
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