Indonesia taps into Mid-East revival

摘要

The republic of indonesia has tapped into resurgent risk appetite from the Middle East with a tight US$2.5bn dual-tranche sukuk issue, its largest Islamic offering to-date. Indonesia priced a US$750m five-year issue at a profit rate of 3.4%, a full 30bp tighter than initial guidance of the 3.7% area. The US$1.75bn 10-year tranche was priced at 4.55%, also well inside initial thoughts of the 4.8% area. Bankers familiar with the deal said that, initially, Indonesia had wanted to make a US$2bn 10-year sukuk offering, but high demand from Middle Eastern investors encouraged the government to add a five-year tranche.