Get ready ORI018 is offered starting tomorrow, here are the yield predictions

Reporter: Hikma Dirgantara | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The successful sale of the SR013 retail sukuk series, the government again issued retail bonds. Sales of SR013 touched Rp 25.57 trillion, which was also the highest sales of retail debt securities.

The government will open the offering period for retail bonds series ORI018 on Thursday (1/10) tomorrow. ORI018 is the fifth retail bond issued by the government this year.

Trimegah Sekuritas Head of Fixed Income Darma Yudha said, ORI018 has the same potential sales as yesterday’s SR013. In addition, retail investors find it difficult to find investment instruments that are safe and have higher returns than deposits.

“From demand will still remain strong as the liquidity of retail investors is currently very abundant. ORI instruments are also better known by the public so that their sales reach can be even wider, “said Yudha to Kontan.co.id, Tuesday (29/9).

Also Read: BCA is the distribution partner with the highest sales of SR013 retail sukuk

Director and Chief Investment Officer Fixed Income Manulife Asset Management Ezra Nazula estimates that the prospect of ORI018 will remain attractive. Ezra said that investors will need instruments that provide stability, security and periodic coupons such as ORI018.

“For the yield, we estimate that it will not be much different from SR013. So it’s not far from the 6% range. This product locked in yield for three years, it is much more profitable than investing in deposits where a downward trend in banking interest rates means eliminating risk reinvestment, ”Said Ezra.

Yudha estimates that the government will reduce the yield on ORI018 because of this demand which was very high at yesterday’s SR013. However, if he wants ORI018 to remain attractive, Yudha said that the government should keep the yield at around 6%. According to him, if the yield is below 6%, it will enter 5% psychologically and will likely be considered less attractive.

Also Read: The government will hold an additional SBSN auction on Wednesday (30/9)

“Sales of ORI018 have the potential to equal or even exceed SR013 because in the midst of a pandemic like this, people who have liquidity will prefer to invest rather than consumptive. Moreover, the ORI018 tax is only 15% and avoids the risk of default, ”continued Yudha.

Meanwhile, Head of Fixed Income Sucorinvest Asset Management Dimas Yusuf estimates that if the ORI018 coupon is below 6%, the opportunity will still be attractive. Provided that the coupon reduction is only around 10-15 bps compared to the SR013 coupon.

“So as long as the ORI018 coupon is still in the range of 5.90-5.95%, actually it will still be an attractive instrument for investment diversification. So it really depends on the government, wanting to prioritize cost who are cheaper or willing to be able to withdraw funds from the larger public, “said Dimas.

Also Read: SR013 is selling well, the government is pursuing the issuance of ORI018 starting this week