JAKARTA, May 25 Reuters Indonesia has raised 3.25 billion by selling U.S. dollardenominated Islamic bonds with 5year and 10year tenures, the country39;s biggest global sukuk issuance, the finance ministry said on Wednesday.
The 5year notes carry a coupon of 4.40, while the 10year notes have a 4.70 coupon, below the sovereign39;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.
Indonesia usually taps the global sukuk market once every year.
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 5year and 10year 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.
CIMB, Deutsche Bank, Dubai Islamic Bank, HSBC and Standard Chartered Bank were the joint lead manager and joint bookrunner for the transaction.
HSBC and Standard Chartered Bank were also joint green structuring advisor. BRI Danareksa Sekuritas dan Trimegah Sekuritas Indonesia acted as comanagers.
Reporting by Gayatri Suroyo and Stefanno Sulaiman Editing by Ed Davies, Martin Petty
Source Reuters