JAKARTA : Indonesia has raised $3.25 billion by selling U.S. dollar-denominated Islamic bonds with 5-year and 10-year tenures, the country's biggest global sukuk issuance, the finance ministry said on Wednesday.
The 5-year notes carry a coupon of 4.40 per cent, while the 10-year notes have a 4.70 per cent coupon, below the sovereign's initial price guidance, it said in a statement.
Total order books reached $10.8 billion.
"The issuance ... is the biggest global sukuk transaction by the government in history, an accomplishment achieved amid intraday (market) volatility," the ministry said.
Indonesia usually taps the global sukuk market once every year.
Last year it sold $3 billion worth of Islamic bonds. Those bonds carried much lower coupons compared with notes with similar maturities offered on the most recent sale.
The 5-year and 10-year bonds sold in 2021 carried 1.5 per cent and 2.55 per cent coupon rates, respectively.
Most of the buyers of the new issuance were from Asia and the Middle East.
CIMB, Deutsche Bank, Dubai Islamic Bank, HSBC and Standard Chartered Bank were the joint lead manager and joint bookrunner for the transaction.
HSBC and Standard Chartered Bank were also joint green structuring advisor. BRI Danareksa Sekuritas dan Trimegah Sekuritas Indonesia acted as co-managers.