DUBAI: Nasdaq Dubai has welcomed the listing of three Sukuk issuances from the Republic of Indonesia, amounting to a substantial $2.75 billion.
The initiative is part of Indonesia’s ambitious $45 billion Trust Certificate Issuance Programme and marks the fourth occasion in 2024 that the Republic has successfully accessed the US dollar debt capital market.
The achievement distinguishes Indonesia as the only Asian sovereign to navigate this financial landscape with such success, highlighting the persistent and robust investor interest in its issuances.
The newly listed Sukuk tranches consist of $1.1 billion in 5.00 per cent Trust Certificates maturing in 2030, $900 million in 5.25 per cent Trust Certificates due in 2034, and $750 million in 5.65 per cent Trust Certificates set to mature in 2054.
With these additions, the total value of Sukuk listed in Dubai has surged to $98.9 billion, solidifying the city’s status as the global leader in Sukuk issuances. The Government of Indonesia has emerged as one of the largest Sukuk issuers on Nasdaq Dubai, with its total listed Sukuk now amounting to $24.6 billion across 21 listings.
Cementing ties
The significance of this event was underscored during the market opening ceremony, where Husin Bagis, the Ambassador of the Republic of Indonesia to the UAE, along with Eko NM Saputro, Finance Attache at the Indonesian Embassy in Abu Dhabi, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, rang the market opening bell.
Ambassador Bagis remarked on the achievement, emphasising that the Sukuk issuances demonstrate Indonesia’s resilience in the face of global financial challenges. He noted the diverse interest from investors, which reflects a strong investment appetite and market confidence in Indonesia’s economic fundamentals.
Hamed Ali further said the importance of this partnership, stating that the Sukuk listings not only reinforce the strong ties between Indonesia and Dubai but also reaffirm Nasdaq Dubai’s role as a premier global hub for Islamic finance.
The oversubscription rate of 1.8 times for these issuances signals robust interest from global investors, reinforcing confidence in Indonesia’s economic trajectory.
