Global sukuk further eases supply concerns
Aditya Suharmoko, The Jakarta Post, Jakarta | Mon, 04/20/2009 4:38 PM
Indonesia’s first-ever global sukuk (Islamic bonds) issuance was more successful than anticipated, further reducing dollar supply concerns in the country, Citi says.
The sale of five-year sukuk last week saw surprisingly strong demand, with an order of US$4.7 billion, seven times the initial $650 million debt offered.
"We were surprised by the strength of the reception, given that the global sukuk market has been relatively dormant, and Indonesia was entering pretty uncharted territory since Lehman’s collapse," Citi analysts Johanna Chua and Leon Hiew said Monday in an email.
According to Citi, the sukuk issuance was the largest since the Dubai Ports deal in June 2007, and the first from a country outside the GCC since Pakistan in 2005.
