Indonesia aims to raise IDR500 billion (US$57 million) via a sukuk auction on April 26 as part of its efforts to finance its budget deficit and help deepen its Islamic financial markets, according to the finance ministry. The ministry plans to sell Islamic bonds maturing in six, 14, 19, and 25 years. The ministry's most recent sukuk auction was held on April 12 during which it only raised IDR500 billion, half of its IDR1 trillion target, despite attracting IDR4.66 trillion of bids. The finance ministry has been less successful in raising funds via sukuk auctions compared with conventional bonds auctions as
investors typically demand higher yields to offset the relatively non-liquid domestic sukuk market. |
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