Indonesia sells record equalling $2B Sukuk, Hong Kong Next…

Indonesia has sold a record equalling sukuk for the value $2 Billion matching a record set by Qatar in 2012.

Order book of over $6.8 billion from 240 investors. Islamic and Middle Eastern investors subscribed to 41% of the notes, followed by USA 21% and Europe 16%, Asia ex-Indonesia 12% and Indonesia 10%, according to a source close to the deal. Banks purchased 42% of the paper, followed by fund managers 39%, central banks 15%, insurers 2% and private banks 2%.

The sukuk’s structure and documentation, which include the following features in the ijara and wakala series: – On the scheduled dissolution or following the occurrence of a dissolution event, PPSI-III will have the right to require the state to purchase all of its rights, benefits and entitlements in, to and under the trust assets.

Upcoming Sukuk

The Government of Hong Kong, Dubai Islamic Bank are expected to sell Sukuk next week.