WSJ.COM - JAKARTA—Indonesia plans to begin investor meetings next week for a
global sukuk issue of about $1 billion, the country's finance minister
said.
Agus Martowardojo said late Wednesday that the government had met
with arrangers of the Islamic-bond issue and would start visiting
"global financial hubs" next week, raising the prospect of imminent
issuance. The government previously said that a global sukuk issue would
be likely in the third quarter.(source)
Mr. Martowardojo said late last month that he was "optimistic"
investor demand would meet the $1 billion mark it set as guidance,
despite global financial-market jitters brought about by sovereign-debt
problems in Europe and the U.S. "Investors interested in sukuk are very
specific," he said on Aug. 23.
On Thursday, Director General of Debt Rahmat Waluyanto said the
Islamic bond is likely to be issued after September. The government aims
to use the proceeds from the bond to help finance its budget deficit,
which it estimates will reach the equivalent of 2.1% of gross domestic
product by the end of 2011. It also hopes the issue will expand Islamic
finance in the world's most populous Muslim country.
Two people familiar with the matter said the government has appointed
Citigroup Inc., Standard Chartered PLC and HSBC Holdings PLC as
arrangers of the deal. Mr. Martowardojo declined to name the arrangers;
he said on Aug. 23 that the government has picked three.
If the government goes ahead with the plan, the sukuk issue would be
Indonesia's second in the global market. It sold $650 million of such
securities in April 2009.
Despite having the largest Muslim population in the world, the
country's Islamic financial market is still small and lags behind that
of its neighbor, Malaysia.
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