On 14'th November 201 I , The Republic of Indonesia (the "Republic") returned to the Sukuk markets, selling US$l billion worth of 7-year Reg S/144A Fixed Rate Trust Certificates through an intra-day execution strategy, announcing in the Asia moming and closing the transaction before New York close. The transaction follows a series of investor meetings in the Middle East conducted in October.
The certificates priced at par to yield 4.000%. The maturity date of the certificates is on November 21,2018 and the certificates are rated Bal by Moody's, BB+ by Standard and Poor's and BB+ by Fitch. The pricing achieved was 25 bps tighter than the initial price guidance of 4.250%o area.
The transaction marks the second benchmark deal done by the Republic this year and its second intemational Sukuk transaction since 2009. The transaction was executed in line with the Republic's funding roadmap for 2011 and its ongoing objective of promoting Islamic Finance in Asia.
The deal was well-received by investors, accumulating a US$6.5 billion orderbook across 250 accounts. The offering achieves the lowest coupon ever for an international USD issue by the Republic. The book was driven by broad demand across four regions, with allocations of 30% to Islamic and Middle East investors, 12% to Indonesia,32%:o to the Rest of Asia, l8% to Europe and the remaining 8% to the US. By investor type, the initial split was 59Yo to funds, 17% to banks, 1l% to central banks and sovereign wealth funds, 7oA to private banks and 602 to insurance companies.
The Govemment appreciated the strong support from investors for the Republic's second Global Sukuk issuance. This transaction supports Indonesia's growing footprint in the Islamic capital markets.
The certificates will be issued by Perusahaan Penerbit SBSN Indonesia II established by the Govemment of Indonesia under the Govemment Regulation number 51/2010 dated 6'n June 2010 and are expected to settle on November 21,2011. The certificates will be listed on the Singapore Stock Exchange. Citi, HSBC and Standard Chartered Bank were the Joint Lead Managers and Bookrunners for the offering.
-Ends-
This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Republic's securities in any jurisdiction in which such offer, solicitation or sale would be unlrwful prior to registration or qualiJication under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale in the United States, and securities of the Republic may not be offered or sold in the United States absent registration or an exemplion from registration under the Securities Act of 193j, as amended. Any offering of securities by the Republic in the United States would be made by means ofa prospectus, which would be obtainable from the Republic and would contain detailed information about the Republic, including certain stalistical and other economic data. The Republic does not intend to register any portion of the offering in lhe United States or to conduct a public offering of securities in the United States.
© Press Release 2011
