JAKARTA (TheInsiderStories) – Nasdaq Dubai has welcomed the listing of three SUKUK issued by the government of Indonesia with a total value of US$2.5 billion and a $1.5 billion issued by Islamic Development Bank (IsDB) to support COVID-19 relief initiatives. The Southeast largest economy is the largest SUKUK issuer on the bourse by value and number of listings, with securities totaling $17.5 billion from 14 issuances.
The statement said, the listings by Indonesia comprise a 10-year issuance of $1billion and two issuances of green SUKUK worth of $750 million each, one of a five-year maturity and the other for 30 years. The country now has three Green SUKUK listings on Nasdaq Dubai, including the world’ first sovereign green SUKUK issuance of $1.25 billion that listed in March 2018.
Hamed Ali, Chief executive of Nasdaq Dubai, said: “Dubai’ longstanding capital markets partnership with Indonesia supports the economic development of both nations and the growth of the Sharia-compliant financial markets across the world.”
While for IsDB, the SUKUK is the second to be issued under Its Sustainable Finance Framework, following its debut Green SUKUK last year and is the first ever AAA-rated Sustainability SUKUK to being the first COVID-19 related SUKUK in the global capital markets. It brings the number of IsDB SUKUK listed on the region’ international exchange to 12 with a total value of $16.14 billion.
President IsDB, Bandar Hajjar, stated: “The competitive profit rate of 0.908 percent that we achieved reflects strong market confidence in our issuance and we look forward to further expanding our sustainable financing activities, including developing our cooperation with Nasdaq Dubai as the region’s international financial exchange.”
The listing brings the total value of SUKUK listed in Nasdaq Dubai to $70.79 billion, reinforcing its status as one of the largest Sukuk listing centres in the world by value. The exchange also hosts IsDB’ first Green SUKUK, EUR1 billion instrument that was issued in December 2019 under the the Sustainable Finance Framework.
The Indonesian government is the largest SUKUK issuer on the exchange, both by value and number of listings, with securities totaling $17.5 billion from 14 issuances. The latest three Indonesian government SUKUK listings took place on June 23.
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