The target is to raise Rp2 trillion from the sale of ST007.
Jakarta (ANTARA) - An official of the Finance Ministry highlighted the government’s target of collecting Rp2 trillion from the sale of ST007 series of the savings sukuk (Islamic bonds).

"The target is to raise Rp2 trillion from the sale of ST007," Director General of Financing and Risk Management at the Finance Ministry Luky Alfriman stated here on Wednesday.

The debt papers, set to mature in two years on November 10, 2022, will be open for subscription from November 4 to 25, 2020,

The savings sukuk carry a floating coupon rate. In the first period from January 10, 2021, to February 10, 2021, the coupon rate will be set at 5.5 percent in accordance with the BI 7-day reverse repo rate of four percent, plus spread of 150 bps.

The public can subscribe to the green sukuk through 31 distribution partners in e-SBN, with the minimum subscription set at Rp1 million and maximum booking at Rp3 billion.

The government will utilize proceeds from the issuance of savings sukuk to finance green projects in the state budget (APBN).

Alfriman urged the public holding surfeit funds to invest in state bonds, including savings sukuk, as part of the efforts to contribute to financing of the state budget.

The director general noted that the government had diversified state bonds, including foreign exchange-denominated bonds, rupiah-denominated bonds, conventional bonds, and savings sukuk, to manage the budget deficit risk.

"That is part of the diversification efforts to manage the government's portfolio," he remarked.

The government had earlier issued five retail bonds 2020 series -- SBR009, SR012, ORI017, SR013 and ORI018 -- to garner Rp71.37 trillion proceeds from the public. Related news: Indonesia's economic growth shows improvement in 3rd quarter: Jokowi

Related news: Indonesia records better growth than other G20 countries: report


EDITED BY INE

Translator: Astrid Faidlatul H/Suharto
Editor: Fardah Assegaf
Copyright © ANTARA 2020