Sukuk to go retail in February 09

The Ministry of Finance stated it will offer the Indonesian sovereign Islamic bonds, or sukuk, for retail investors beginning in February next year, writes Kompas. The Ministry, said spokesperson Rahmat Waluyanto, is currently selecting agents to be in charge of selling the bonds.

According to Waluyanto, the bonds will offer higher yield than time deposits, which will be paid monthly, and mature in three years.

The government has not made the decision on the unit price of the bonds and their minimum purchase unit. These might not vary much from the ORI retail bonds, whose unit price was Rp1 million with a minimum purchase unit of Rp5 million.

In its maiden issuance for corporate investors several months ago, the bonds met favorable reception with demand far outweigh the government’s target of Rp5 trillion. The government ended up accepting only Rp4.69 trillion of orders after rejecting higher yield bids.

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