www.thejakartaglobe.com - Indonesia will sell dollar-denominated sukuk toward the end of the year,
according to Dahlan Siamat, a director of Islamic financing at the debt
management office, provided it gets approval from the finance minister.
Dahlan declined to disclose the size of the offer, saying on
Monday that “we have figures for the amount in the report we sent to the
finance minister, but he will be the one to decide.”
He did not
return calls from the Jakarta Globe seeking comment on the Islamic debt
sale. Finance Minister Agus Martowardojo was not available for comment.
(source)
If the sale of the Islamic bonds goes forward, it would be the
third Islamic dollar-denominated sale by Southeast Asia’s largest
economy.
Indonesia has been selling conventional and Islamic
bonds in the past year to help plug its budget deficit. The country’s
budget shortfall is forecast to reach 2.23 percent of the gross domestic
product this year, according to a revised 2012 state budget.
Indonesia
last sold global Shariah-compliant debt on Nov. 14 of last year. The $1
billion of debt due in November 2018 was auctioned at a yield of 4
percent, compared with the 8.8 percent yield on Indonesia’s debut sale
of five-year Islamic dollar bonds in 2009.
The yield on the 4
percent notes due November 2018 increased four basis points, or 0.04
percentage point, to 4.17 percent on Monday, data compiled by Bloomberg
show.
Indonesia raised $650 million from its first-ever
international sale of Islamic dollar bonds in April 2009. Islamic bonds,
known as sukuk, comply with Shariah law by using asset returns to pay
investors instead of offering interest.
Source: http://www.thejakartaglobe.com/business/sukuk-sale-in-works-for-end-of-the-year/522222 - June 6, 2012
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