Indonesia’s dual-tranche Sukuk offering has expanded the exchange’s Islamic debt market to $98.6 billion, with over 100 listings. Ambassador Husin Bagis highlighted the deals as reflecting Indonesia’s “strong economic fundamentals” and dedication to sustainable development financing.
In terms of global Islamic capital markets, Indonesia’s recent issue of $2.2 billion Sukuk on Nasdaq Dubai is evidence of Indonesia’s continued leadership as the biggest sovereign issuer on the exchange. The dual listing comprises the issuance of the $1.1 billion 4.55% trust certificate due 2030 and the issuance of the $1.1 billion 5.20% green trust certificate due 2035, bringing the total outstanding portfolio of Indonesian Sukuk on the platform to $24.05 billion across 21 issuances.
Ambassador Husin Bagis emphasised that the issuance is evidence of Indonesia’s solid economic fundamentals and rising presence in global financial markets. He further emphasised that the green dimension reflects Indonesia’s unwavering commitment to sustainable development, ensuring that growth financing is aligned with environmental protection and responsibility toward future generations.
Nasdaq Dubai and Dubai Financial Market CEO Hamed Ali emphasised the listing’s reflection of the bourse’s status as a centre of sovereign and ESG-related issuances. He pointed out the site’s continued dedication to enabling worldwide investor accessibility through transparent and efficient marketplace operations.
The green trust certificate is Indonesia’s eighth consecutive annual green Sukuk issuance since 2018, totalling $7.7 billion in sustainable finance instruments. The latest issue is in favour of projects under the Sustainable Government Securities Framework of Indonesia, which was rated “Excellent” by Sustainable Fitch in terms of evaluation, selection, reporting and transparency requirements. The deals saw strong international demand, with order books combined totalling $7 billion, which was over three times oversubscribed. The issuance was arranged jointly with the Joint Lead Managers Bank of America, Deutsche Bank, Dubai Islamic Bank, HSBC and Mandiri Securities. The Co-Managers were BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia.
Indonesia’s new Sukuk issue underpins the Republic’s budget financing plans in fiscal year 2025 while renewing investors’ confidence in the Republic’s economic management and climate change mitigation policies. The trust certificates have Moody’s Baa2 ratings as well as S&P Global’s and Fitch’s BBB ratings, maintaining the issue aligned with the Indonesian sovereign credit profile.
The total debt market of Nasdaq Dubai now exceeds $139 billion across 160 issues, with more than 50% comprising sovereign and government listings. The increasing popularity of the bourse among overseas sovereign issuers is fast making Dubai one of the world’s top Islamic finance capital markets centres.
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