Published: Monday October 17, 2011 MYT 2:11:00 PM
Updated: Monday October 17, 2011 MYT 2:12:16 PM
Indonesia plans to sell $500 mln global sukuk this year
KUALA LUMPUR: The Indonesian Finance Ministry is targetting a $500 million 5-year global sukuk issuance this year, an official told reporters at an Islamic finance forum here on Monday.
"We are looking for the benchmark tenor, but we hope to have longer (tenures)," Dwi Irianti Hadiningdyah, deputy director of Islamic Financing for the ministry's debt management office, said.
"For the size, we will use the benchmark size but maybe we can do more, depending on the situation."
The planned offering will be Indonesia's second global sukuk following its first $650 million global sukuk issued in 2009. The 5-year papers were then priced at 8.80 percent.
Indonesia will be the second Asian sovereign to issue a global sukuk this year after Malaysia raised $2 billion in an offering which attracted $9 billion of subscriptions. - Reuters
Thomson Reuters publication IFR reported last week that Indonesia was planning to meet investors in the Middle East this week to market the sukuk.