JAKARTA, Aug 9 (Reuters) - Indonesia's finance ministry has sold 2.855 trillion rupiah of government sukuk to the state-managed Islamic Haj Fund through a private placement on Monday, and will use the proceeds to fund the budget deficit.
The ministry said on its website (www.dmo.or id) that the non-tradeable papers will carry a coupon of 7.36 percent and mature in 2014. The Haj Fund is managed by the religious affairs ministry using money collected by Muslims going on pilgrimage to Mecca.
Indonesia said last month it will cut its remaining debt issuance, including scaling back a global sukuk, after lowering its forecast for the budget deficit because of stronger growth and government revenues.
The finance ministry has recently failed to raise its target amount in sukuk auctions, reflecting investor concerns about poor liquidity for Islamic paper.
(Reporting by Dicky Kristanto; Editing by Neil Chatterjee)
http://www.xe.com/news/2010-08-09%2003:21:00.0/1323209.htm?c=1&t= Aug 09, 2010
