Indonesia raises $3.25 bln in its biggest global sukuk sale
JAKARTA, (Reuters) – Indonesia has raised $3.25 billion by selling U.S. dollar-denominated Islamic bonds with 5-year and 10-year tenures, the country’s biggest global sukuk issuance, the finance ministry said on Wednesday.
The 5-year notes carry a coupon of 4.40%, while the 10-year notes have a 4.70% coupon, below the sovereign’s initial price guidance, it said in a statement.
Total order books reached $10.8 billion.
“The issuance … is the biggest global sukuk transaction by the government in history, an accomplishment achieved amid intraday (market) volatility,” the ministry said.
Last year it sold $3 billion worth of Islamic bonds. Those bonds carried much lower coupons compared with notes with similar maturities offered on the most recent sale.
The 5-year and 10-year bonds sold in 2021 carried 1.5% and 2.55% coupon rates, respectively.
Most of the buyers of the new issuance were from Asia and the Middle East.