Govt Issues US$1.5 Billion Worth Of Global Islamic Bonds

Jakarta, Sept 3 (Antara) - The Indonesian government has issued global Islamic bonds worth US$1.5 billion to meet part of its financing target set in the revised 2014 state budget. The government had settled the pricing of the Shariah compliant bonds on Tuesday (Sept. 2), Director General of Debt Management at the Finance Ministry Robert Pakpahan stated in a press statement released on Wednesday. The bids for the 10-year Islamic bonds issued at a yield or coupon of 4.35 percent reached US$10.23 billion or the bonds were 6.82 times oversubscribed, he remarked. The figure was the biggest ever reached in the issuance of global Islamic bonds in Southeast Asia, he pointed out. The investors from the Middle East and Islamic countries raked up 35 percent of the dollar-denominated bonds, while the Asian buyers including those from Indonesia bought 30 percent, Europe 15 percent, and the United States 20 percent. The settlement of the Shariah bond transaction will be made on September 10, 2014, he affirmed. "Joint book runners in the issuance of the global sukuk are Standard Chartered, CIMB, HSBC, and Emirates NBD, with Bahana and Mandiri Sekuritas acting as co-managers," he added.