Indonesia Sells USD 3.25 Billion US Dollar-denominated Sukuk, its Biggest Global Sukuk Offering

Indonesia has completed the sale of 5-year and 10-year US dollar-denominated Sukuk worth USD 3.25 billion in the country's largest global Sukuk issuance, according to the Ministry of Finance on the 25th of May 2022.

Why it Matters?

The issuance, which took place amid intraday market volatility, had a coupon rate of 4.40% on the 5-year notes and 4.70% on the 10-year notes, both of which were below the sovereign's initial price guide. The total order books for the issuance reached USD 10.8 billion, with Asia and the Middle East accounting for the majority of the buyers.

Details

The joint lead managers and joint bookrunners for the transaction were CIMB, Deutsche Bank, Dubai Islamic Bank, HSBC and Standard Chartered Bank.

The joint green structuring advisors were HSBC and Standard Chartered Bank, while the co-managers were BRI Danareksa Sekuritas dan Trimegah Sekuritas Indonesia.In 2021, Indonesia raised USD 3 billion in 5-year and 10-year Sukuk, carrying 1.5% and 2.55% coupon rates, respectively.