JAKARTA (TheInsiderStories) - The Indonesian government has listed the largest Islamic bonds (SUKUK) in NASDAQ Dubai, Uni Arab Emirate (UAE). In 2012, Indonesia entered into a Trust Certificate Issuance Program which currently has four series outstanding valued at $6 billion (Rp85.80 trillion).
The bell-ringing ceremony took place in the presence of Indonesian Finance Minister Bambang Brodjonegoro, Mohammed Abdulla Al-Gergawi, UAE’s cabinet affairs minister and Chairman of the Dubai Islamic Economy Development Centre (DIFC), Essa Kazim Governor, Secretary General of DIEDC, and Chairman of Dubai Financial Market (DFM), Robert Pakpahan Director General of Budget Financing and Risk Management of Finance Ministry and Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai.
Bambang said during the market-opening bell to celebrate the listing of the bonds based on UAE media report, the listing of SUKUK is an important step forward in further strengthening Indonesia’s ties with the UAE and the wider Middle East.
“Since our international debut in 2009, we have issued global sukuk valued at 7.65 billion dollars,” Minister Bambang Brodjonegoro said.
He added Indonesia has become a leading Sovereign Sukuk issuer in the world and has launched an inaugural Wakala-structure SUKUK in 2014 and issued single-tranche U.S. dollar Sukuk in May, 31, 2015 with four series one issuance of $2 billion, two tranches of $1.5 billion and $1 billion.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said the exchange will further develop its close ties with international and regional investors, underpinning the global visibility of the SUKUK issued by the government of Indonesia.
Previously, Deputy Group CEO of Noor Bank Ahmed Aljanahi, said after meeting with Bambang Brodjonegoro, that Dubai’s investors are interested to buy more than $1 billion of Indonesia Islamic bonds this year.
The bank and other UAE banks such as National Bank of Dubai and Dubai Islamic Bank have bought state-own flight carriers PT Garuda Indonesia Tbk (IDX: GIAA) $500 million and Indonesian SUKUK worth $2 billion in May.
“We are more interested in immediate issuances of the SUKUK. We’re living to them (Finance Ministry) when they want the money. We also interested basically in infrastructure projects as well because we think the potential is good,” Aljanahi told The Insider Stories recently.
He added Noor bank and other investors from UAE are actively looking for SUKUK program in global market. Aljanahi said there is a largest opportunity to invest in Indonesia because the country’s economy is growing.
This year Indonesia plans to issue government bonds denominated in U.S. dollar about Rp52 trillion ($3.71 billion) including SUKUK based on infrastructure projects up to Rp6.94 trillion. As of June 2015, total Indonesia’s debt is Rp 2,864.14 trillion, includes foreign debt of Rp 692.94 trillion and Government Securities of Rp 2,171.24 trillion.
Indonesia, the biggest Muslim nation with a total population of 255 million people, is a frequent sukuk issuer in the global market, he added.
NASDAQ Dubai, a licensed market of the DIFC, is the Middle East’s only international capital market by regulatory standards. The bourse attracted SUKUK listings valued at $13.4 billion last year and has added $12.6 billion so far in 2015.
Dubai is the world’s leading sukuk centre by listed nominal value at 36.7 billion dollars, with Nasdaq Dubai accounting for 93 percent of that amount. (*)
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