Jakarta (ANTARA News) - The government will again offer state sharia bonds (sukuk) in an auction on October 27 to meet part of the financing target in the 2009 state budget, a Finance Ministry official said.

The sukuk up for the auction would be series IFR0003, IFR0004, and IFR0005, the ministry`s director general of debt management, Rahmat Waluyanto, said in a statement on Wednesday.

"The series IFR0003 and IFR0004 are those put to the auction on October 13, 2009 when none of bids was declared qualified," he said.

In the October 13, 2009 auction, the government received Rp1.47 trillion bids for the series IFR0003 and Rp3.51 trillion bids for the series IFR0004, bringing the total bids to more than Rp5 trillion, he said.

Waluyanto said there were at least three reasons behind the government`s decision to disqualify the bids. "It turns out that the yield offered was higher than the government`s forecast."

In addition, the government still had a wide range of more efficient instruments with lower risks, he said.

"The other consideration is that the issuance of state bonds has so far reached 92 percent of the target so that the financing target in the 2009 state budget is likely to be met," he said.

The government said on Tuesday it raised Rp4.5 trillion in funds from the auction of state bonds here on that day.

The bonds put to the auction were series 20101007, FR0040 and FR0052, all of them reopening of the existing issues, Waluyanto said.(*)

Editor: Heru

COPYRIGHT © 2009

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