Indonesia Sells $1.5 Billion of Sukuk at Top Rate Since 2009
11 Sep 2013 07:24 GMT
 
Indonesia sold $1.5 billion of dollar-denominated Islamic bonds at the highest yield since 2009 as it seeks to bolster its foreign-exchange reserves t (more)

Indonesia sold $1.5 billion of dollar-denominated Islamic bonds at the highest yield since 2009 as it seeks to bolster its foreign-exchange reserves to support the plunging rupiah.

The nation issued the notes due in 5.5 years to yield 6.125 percent, according to Dahlan Siamat, Islamic financing director at the debt management office. That was the highest rate for global Shariah-compliant securities since Indonesia paid 8.8 percent on its debut dollar sukuk in 2009. The country last offered global Islamic paper in November, selling $1 billion of 10-year securities at a record-low yield of 3.3 percent.

Bank Indonesia has burned through $19.8 billion of foreign-currency reserves this year to stem declines in the rupiah, which has weakened 14 percent against the dollar. Investors submitted $5.6 billion of bids, more than three times the amount offered, Siamat said, compared with a bid-to-cover ratio of 1.9 times at a sale of non-Islamic 10-year dollar bonds in July.


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