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Jakarta Post

Yield for retail sukuk at 12%

  • Aditya Suharmoko

    The Jakarta Post

Jakarta   /   Thu, January 29 2009   /  01:53 pm

The government's first retail sukuk will carry a yield of 12 percent, higher than the average return of comparable government bonds. Finance Ministry's director general of debt management Rahmat Waluyanto said Wednesday the 12 percent coupon had taken into account "the condition of the domestic financial market, and the cost that could be borne by the government in managing its debts". "The coupon is also comparable to the yield of three-year government bonds," he said. Rahmat made such a comparison because the government's first retail sukuk, coded SR-001, will have a three-year maturity. The retail sukuk is aimed at individual investors, with a minimum purchase of Rp 5 million and its multipliers. There is no purchase limit. Director of sharia financing Dahlan Siamat said the Finance Ministry did not set any certain target for t...