Strengthening Indonesia’s Global Sukuk Presence
PC: wam.ae
Nasdaq Dubai welcomed the listing of three Sukuk issuances from the Republic of Indonesia, amassing USD 2.75 billion. The issuances, part of the country’s Programme for Trust Certificate Issuances worth USD 45 Billion, form Indonesia’s successful fourth entry into the USD-denominated debt capital market within 2024. Indonesia emerges as the sole Asian sovereign accomplishing this feat in this year thus far and, by it, is able to enjoy strong and consistent investor demand.
Details of the Issues
New Sukuk tranches listed include:
USD 1.1 billion 5.00% Trust Certificates, due in 2030
USD 900 million 5.25% Trust Certificates, due in 2034
USD 750 million 5.65% Trust Certificates, due in 2054.
These listings have increased the total value of Sukuk listed in Dubai to USD 98.9 billion, making Dubai the global leader in Sukuk issuances. Indonesia, one of Nasdaq Dubai’s largest Sukuk issuers, has now reached a total listed Sukuk value of USD 24.6 billion across 21 listings. Market Opening Ceremony
To mark the occasion, H.E. Husin Bagis, Ambassador of the Republic of Indonesia to the UAE, rang the market opening bell alongside Mr. Eko NM Saputro, Finance Attaché at the Indonesian Embassy in Abu Dhabi, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
H.E. Husin Bagis said, “The three Sukuk issuances by the Republic of Indonesia represent a remarkable achievement. Despite global financial challenges, the government successfully entered the market, attracting interest from a diverse range of investors across geographies. This highlights strong investment appetite and market confidence in the Republic, underpinned by its robust economic fundamentals.”
Hamed Ali also emphasized the importance of these listings, saying, “We welcome the latest Sukuk listings by the Republic of Indonesia on Nasdaq Dubai. This achievement underscores the strong partnership between Indonesia and Dubai, while reaffirming Nasdaq Dubai’s position as a premier global hub for Islamic finance. These Sukuk listings affirm the robust confidence international investors have in Indonesia’s strong economic fundamentals and the reliability of Nasdaq Dubai as a marketplace. We are committed to supporting issuers and investors in their growth and innovation ambitions within the global Islamic finance sector, Suvervis emphasized.”
Global Investor Confidence
The Sukuk issuance was oversubscribed at 1.8 times, which reflects strong interest from investors across the globe. This interest indicates increasing confidence in Indonesia’s economic trend and its ability to navigate financial challenges in the global economy successfully.
Indonesia remains a key player in the global Islamic finance market through its continued presence on Nasdaq Dubai.
