The Indonesian government issued the retail green savings Sukuk series ST010T4 on the 7th June 2023 with an orderbook of IDR3.3 trillion (US$219.19 million). The facility was issued through the Directorate General of Budget Financing and Risk Management (DJPPR), which issues budget-financing Sukuk under the Indonesian Ministry of Finance.
The four-year green savings Sukuk facility is part of a dual-tranche issuance, with the non-green two-year tranche receiving IDR11.7 trillion (US$777.15 million) in total investment.
The green tranche of the issuance will finance the government’s commitment to reduce the impact of climate change. The proceeds will be channeled toward financing environmentally-friendly projects in the national budget.
The considerably smaller issue size of the green Sukuk tranche, which received an over three times larger orderbook, is notably not due to a lack of comparative demand. The issue size of the green tranche was capped at IDR3.3 trillion, with the facility being fully subscribed by the 14th day of the 26-day offer period.
According to the Indonesian Ministry of Finance, both Sukuk tranches recorded a higher participation from female investors in nominal terms, while male investors contributed to a higher proportion of the total order volume.
Female investors for the green Sukuk tranche accounted for 52.75% of the total investors while their investments contributed to 42.36% of the total order volume.
The green retail Sukuk tranche follows the ST009 and ST008 green Sukuk facilities issued in November 2022 and 2021 respectively. The issuance notably has a broader use of proceeds than the previous retail savings Sukuk facilities, with proceeds from the last two issuances being earmarked for transport and climate change projects. The DJPPR has also previously issued three retail cash Waqf-linked Sukuk facilities under the Sukuk Wakaf Retail series to finance the budget, in addition to the issuance of retail green Sukuk facilities under the savings Sukuk program.
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Indonesian Government ST010T4 Green Savings Sukuk IDR3.3 trillion (US$219.19 million)  7th June 2023 |
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| Summary of terms and conditions | |
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Issuer |
Indonesian government |
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Size of issue |
IDR3.3 trillion (US$219.19 million) |
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Mode of issue |
Retail |
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Purpose |
To finance environmentally-friendly projects |
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Tenor |
Four years |
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Payment |
Monthly |
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Profit rate |
6.4% |
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Currency |
Indonesian rupiah |
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Maturiy date |
10th June 2027 |
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Governing law |
Indonesian law |
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Islamic structure |
Wakalah |
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Underlying asset |
Sovereign assets and green projects under the 2022 national budget |
Tradability |
Non-tradable, non-transferable |
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Face value/minimum investment |
IDR1 million (US$66.42) |