Indonesia sells 925 bln rupiah sukuk, slightly below target
Indonesia’s finance ministry raised 925 billion rupiah ($102.6 million) in sukuk auctions on Tuesday, slightly below target, to fund the state budget deficit despite the ministry’s expectations to raise 1 trillion rupiah.
Incoming bids amounted to 2.36 trillion rupiah, or more than twice the amount raised by the ministry as demand was especially strong for the five-year sukuk, with a bid-to-cover ratio of 7.23.
The five-year sukuk was priced to yield 8.31 percent, whereas comparable conventional debt currently yields about 8 percent. Indonesian bonds have attracted strong demand from foreign investors seeking high-yielding assets.