Issuer: Perusahaan Penerbit SBSN Indonesia III
Obligor: Republic of Indonesia
Size: $2 billion total
Structure: Wakala
Tenor: Five years, 10 years
Banks: CIMB, Citi, Dubai Islamic Bank, Mandiri Sekurities, Standard Chartered (lead managers, bookrunners)
Date: November 2023
There are some emerging-market sovereign issuers that are on investors’ priority buy lists each year for the regularity and quality of their issuance across bond and sukuk format.
The Republic of Indonesia, one of the most prolific issuers of sukuk globally, is one of those marquee sovereigns that investors look for and almost always show strong interest in when they come to market each year.
After biding its time, monitoring the market for an opportunity to issue amid rate volatility across much of the year, Indonesia finally made its move in November, issuing $2 billion in total across a conventional $1 billion five-year sukuk and a $1 billion 10-year green sukuk.
Together the tranches attracted an orderbook of over $5.6 billion, allowing the Indonesian treasury team and supporting banks to price the five-year at a spread of 86.7