IslamicFinance.de

Indonesia is about to get an annual scorecard from Islamic bond investors and the signs are good. The nation’s first dollar sukuk in a year may yield 3.8 percent to 4.5 percent if the tenor is 10 years. That’s less than the 6.125 percent on 2019 global Islamic notes sold last September. Bank Indonesia has added $18 billion to currency reserves over the past year, inflation has almost halved from January and bond risk fell as Joko Widodo fended off legal challenges to his victory in July’s presidential election. Demand for Indonesia’s sukuk will be buoyed by a shortage of global Shariah-compliant securities. The nation’s dollar sukuk due November 2022 returned 17 percent this year, outpacing gains of 9.2 percent and 12 percent for similar notes from Malaysia and Dubai.