Record Indonesia Sukuk Sale to Households Cuts Costs

Indonesia's finance ministry sold Rp 19.3 trillion ($1.7 billion) of the three-year Islamic bonds to households, exceeding its Rp 18.5 trillion goal. That came after two of its three Shariah-compliant debt auctions this year failed to meet their targets. The yield on the non-retail 10.25 percent sukuk due 2025 slid 29 basis points this week to 8.61 percent, the lowest since November. Indonesia is targeting Rp 57 trillion of Islamic bond sales this year and wants to sell most of that this half before a presidential vote in July. The next offer is scheduled for March 11.