Indonesia woos millennials with 7.3 trln rupiah online retail savings bonds
JAKARTA, Sept 18 (Reuters) - Indonesian government sold 7.32 trillion rupiah ($490.5 million) worth of bonds to local retail investors through online offering, the finance ministry's financing and risk management office said on late on Monday.
The issue is the highest for its series, the retail savings bonds, and nearly four times the size sold in the previous issuance, according to finance ministry data.
The bonds, maturing September 2020, were sold as part of efforts to reduce the portion of foreign ownership by reaching out to new domestic investors.
These millennials were investing in government securities for the first time, buying as little as 1 million rupiah worth of bonds, the finance ministry said in a statement.
The government attached a floating rate to the bonds with a floor of 8.05 percent.
The bonds, called SBR004, were the second retail savings bonds sold through online channels following its predecessor SBR003 and it was about 4.9 times oversubscribed compared to the preliminary target told by distribution partners.
Previously, Indonesia raised 1.93 trillion rupiah during the SBR003 issuance with a floating coupon rate flooring at 6.80 percent.
Bank Indonesia (BI) Deputy Governor Dody Budi Waluyo said the central bank was focused on maintaining the rate differential against other economies to remain as an attractive investment destination. BI has increased its benchmark rate by 125 bps so far this year.
($1 = 14,925 rupiah)
This article appears in: Politics , Fundamental Analysis , Stocks , BondsSource: Google News Indonesia | Netizen 24 Indonesia