Indonesia brings back green sukuk

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By Morgan Davis
17 Jun 2020

The Republic of Indonesia rolled out its annual Islamic finance transaction on Tuesday, taking $2.5bn from a three-tranche sukuk. The sheer strength of investor interest surprised the bankers on the bond, leading to a hefty 70bp tightening and a deal that offered negative new issue premium.

The deal marked Indonesia’s third time in the dollar market this year.

In January, Indonesia raised more than $3bn from a dollar and euro trade. The country followed that up with a $4.3bn triple-tranche bond in April to help fund its Covid-19 pandemic relief ...

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