INDONESIA - CAPITAL MARKETS - Lower Yields Breathe New Life Into Indonesia’s Islamic Lending

www.thejakartabglobe.com - A year long drought in the sales of corporate sukuk in Indonesia is ending as falling yields spur offers by Bank Muamalat Indonesia and Mayora Indah.

Bank Muamalat, the nation’s second-largest Islamic lender, will offer as much as Rp 800 billion ($87.2 million) of Shariah-compliant notes in June, finance director Hendiarto said on April 4.

Mayora Indah, a biscuit maker, will sell Rp 250 billion of debt in May, a company statement said on Monday. The average yield on Indonesian corporate dollar-denominated debt has fallen 34 basis points to 4.87 percent since Jan. 17, the day before Moody’s Investors Service gave the country an investment-grade rating. (source)

INDONESIA - CAPITAL MARKETS - Mayora Indah and Bank Muamalat to issue 'sukuk'

www.thejakartapost.com - Publicly listed food-producer PT Mayora Indah Tbk and PT Bank Muamalat Indonesia Tbk plan to issue sukuk, or Islamic debt papers, this year in the hopes of raising Rp 250 billion (US$27 million) and Rp 800 billion, respectively, the National Sharia Council says.

Mayora Indah will launch its sukuk on Monday while Bank Muamalat, which runs according to Sharia banking principles, will follow in July, Kanny Hidaya, the council's deputy secretary, said Thursday during a discussion about sukuk development in Indonesia.  (source)

CAPITAL MARKETS - Sukuk Sales on Hold Until House Gives Approval

Indonesia has postponed Islamic bond sales for the past eight weeks as legislators delay approvals needed for new securities.

The government postponed auctions of rupiah sukuk due in five, 10 and 15 years on May 31 and June 14. Local companies have sold Rp 200 billion ($23 million) of Islamic bonds this year, compared with Rp 700 billion in 2010.  (source)