Indonesia invites banks to pitch for US dollar sukuk

SINGAPORE: The Republic of Indonesia (Baa 3/BB+/BBB-) has asked banks to submit proposals by Thursday for a planned US dollar sukuk offering.

It raised $2.5 billion (Dh9.18 billion) from a sukuk offering last March, with a five-year tranche paying a profit rate of 3.4 per cent and a 10-year paying 4.55 per cent.

In December, the sovereign raised $3.5 billion from a conventional bond issue, with the proceeds to be used towards its 2017 budget. It indicated that it expected to raise $9.1-$11.4 billion from bonds in international currencies this year.

Last month, Fitch raised the outlook on its sovereign rating for Indonesia to positive from stable.

— IFR