• 18 Feb

    Govt to Issue US $ 2 Billion Green Islamic Bonds


    The Indonesian government is set to issue US $ 2 billion worth of State Sharia Sovereign Bonds (SBSN) or sukuk walah is a global order. 
    "The sharia sovereign bonds comprise two series with settlement date on Feb. 20, 2019," the Directorate General of Finance and Risk Management at the Finance Ministry released on Thursday. 
    The first series, worth $ 750 million and with a tenure of 5.5 years, the yield of 3.9 percent and will become due on Aug 20, 2025. The second series, worth $ 1.25 billion with a tenure of 10 years, is issued at a yield of 4.45 percent and will become due on Feb 20, 2029. 

    Each of the series has secured Baa2 rating from Moody's Investors Service, BBB-from S & P Global Ratings, and BBB from Fitch Ratings. The sukuk wakalah, with the registration code S / 144A Trust Certificates, will be listed at the Singapore Stock Exchange and NASDAQ Dubai. 
    The bonds are supported by the Indonesian issuer III, a legal entity which issues securities in accordance with sharia principles in the foreign currency in the international market. The sukuk wakalah, with a tenure of 5.5 years, is the second green sukuk which shows the commitment, leadership and contribution of the Indonesian government with regard to climate change financing. 
    In addition, Indonesia, as the first issuer of Sovereign Green Sukuk, has proven its consistency to the Paris climate Agreement 2016. 
    The government appointed Deutsche Bank AG, Dubai Islamic Bank PJSC, Maybank Investment Bank Berhad, PT Mandiri Sekuritas, and HSBC as green structuring advisors, joint lead managers, and joint book runners. Meanwhile, PT Bahana Securities, PT Danareksa Securities, and PT Trimegah Securities Indonesia Tbk will act as co-managers for the transactions.

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