News Column

Record order book for Indonesia's sovereign Sukuk

September 4, 2014

A statement by the Indoneisan Finance Ministry confirmed the issuance of a global Sukuk worth $1.5 billion with a tenor of 10 years maturing in 2024. The Sukuk registered the largest ever order book for a sovereign Sukuk issued in southeast Asia.

Head of Communications and Information of the Ministry of Finance, Yudi Pramadi said settlement will be held on Tuesday (10/9) future. The global Sukuk are issued at par with a fee of 4.35 per cent and have received ratings of Baa3 from Moody's, BB + from S & P and BBB-from Fitch.

The issuance will be made by a special purpose vehicle, SBSN Indonesia III, a statutory body established by the Government of Indonesia and listed on the Singapore Stock Exchange. The Sukuk structure is based on Wakalah and the assets underlying this Sukuk consist of State Assets leased to the Government and Government projects.

CIMB, Emirates NBD Capital, HSBC and Standard Chartered were lead managers.

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Source: CPI Financial

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