CAPITAL MARKETS - Indonesia Sells 7.34 Trillion Rupiah of Retail Sukuk

Feb. 21 (Bloomberg) -- Indonesia sold 7.34 trillion rupiah ($829 million) of three-year retail Islamic bonds, exceed the target of 6 trillion rupiah, said Rahmat Waluyanto, director general of the Finance Ministry’s debt management office.

Demand for the notes, which will pay a return of 8.15 percent, was the same as the amount sold, Waluyanto said. Indonesia plans to sell 10.5 trillion rupiah of Islamic bonds this year, he said. (source)

The government sold 8.033 trillion rupiah of so-called retail sukuk in February last year, more than the 3 trillion rupiah targeted. The country is tapping individuals to widen its investor base and reduce dependence on overseas debt sales. The government has sold 57.34 trillion rupiah of sukuk since 2008.

Indonesia plans to sell 1 trillion of Islamic bonds through an auction March 1, Waluyanto said.

To contact the reporter on this story: Novrida Manurung at nmanurung@bloomberg.net
To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net

Source : http://www.businessweek.com/news/2011-02-21/indonesia-sells-7-34-trillion-rupiah-of-retail-sukuk.html - Feb 21, 2011