Thursday, April 26, 2012

INDONESIA - CAPITAL MARKETS - Indonesia set to see record Sukuk issuance in 2012: HSBC

asianbankingandfinance.net - The government has already sold US$1.5 billion of local Sukuk in March this year, says HSBC Amanah head Herwin Bustaman.
In a recent teleconference,  HSBC shared its update and outlook for Asia's Sukuk market. According to Herwin Bustaman, head of HSBC Amanah, HSBC Indonesia, Indonesia is very likely to see record Sukuk issuance in 2012; in fact, the government has already sold US$1.5 billion of local Sukuk in March this year. Bustaman estimates another US$1-1.5 billion of global government Sukuk, most likely in the second half of this year.  (source)


"For the first time, we think Indonesia will see one or two corporates issue the country's first USD Sukuk. Previously, it was difficult to do that because of issues such as tax and the transfer of beneficiary ownership. However, with the new tax and Sukuk laws, corporates in Indonesia can now issue USD Sukuk and start reaching out to Middle Eastern investors. The GCC investors are definitely keen to invest in Indonesia especially with the recent investment rating upgrade. They would also like to diversify their investment to countries like Indonesia," he added.

Source:  http://asianbankingandfinance.net/islamic-banking/exclusive/indonesia-set-see-record-sukuk-issuance-in-2012-hsbc - April 24, 2012

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