IslamicFinance.de

Indonesia raised $1.5 billion from the sale of dollar-denominated sukuk on Tuesday, which is to help finance the country’s budget deficit. Foreign investors submitted $10 billion worth of bids on Tuesday, or six times the amount offered. The government awarded 35 percent of the sukuk to Middle East and Islamic funds, 30 percent to investors based in Asia, including Indonesia, 20 percent to US funds and 15 percent to European investors. The 10-year Islamic bonds were sold at 4.35 percent yields, as compared with 6.125 percent paid on notes maturing in 5.5 years in September 2013 and the record-low 3.3 percent on 10-year sukuk sold in 2012. Foreign holdings of the country’s bonds increased to Rp 437.4 trillion as of Sept 2, accounting for some 37 percent of the total debt.