Indonesia raises 31.5t rupiah from retail sukuk

[JAKARTA] Indonesia's finance ministry raised 31.5 trillion rupiah (S$3.33 billion) in retail shariah bonds, the largest issuance of its kind since the government started selling in 2009, the ministry said in a statement on Monday.

The retail sukuk, maturing March 10, 2019, has a fixed coupon of 8.30 per cent, slightly higher than the 8.25 per cent coupon set for the retail sukuk in 2015.

The government raised 21.97 trillion rupiah in retail sukuk last year.

Retail sukuk are offered to individual Indonesians and can be traded in the secondary market after a one-month holding period.

Indonesia will sell more sovereign bonds to local individual investors this year, officials said last month, as it tries to lower its dependence on foreign funds and deepen the local financial market.

REUTERS