The Indonesian government issued its SW006 IDR50 billion (US$3.33 million) private placement cash Waqf-linked Sukuk on the 3rd July 2023. The five-year facility carries a 5.5% coupon rate.
The facility, issued by the Directorate General of Budget Financing and Risk Management (DJPPR), which issues budget-financing Sukuk under the Indonesian Ministry of Finance, represents the country’s sixth private placement Sukuk Waqf endeavor.
DJPPR issued its first private placement Sukuk Waqf on the 10th March 2020 with a nominal value of IDR50.85 billion (US$3.39 million). Subsequent issuances have recorded a peak facility size of IDR100 billion (US$6.66 million).
In contrast to DJPPR’s retail cash Waqf-linked Sukuk facilities, which it also began issuing in 2020, the specific use of funds for private placement Sukuk Waqf is not generally publicly disclosed.
In a statement following the establishment of the private placement cash Waqf-linked Sukuk series, DJPPR confirmed that the series will enable the Indonesian government to facilitate both temporary and permanent cash Waqf projects in the form of productive investment instruments.
In addition to the latest private placement facility, DJPPR also opened its SWR004 retail cash Waqf-linked Sukuk facility on the 7th July this year. The two-year facility, which will close on the 31st August, will predominantly finance the empowerment of farmers and breeders.
The yet-to-be issued facility will also contribute to education scholarships and the Indonesian Santri Halal Kitchen program.
The previous retail cash Waqf-linked Sukuk facility issued last year saw the government record its largest orderbook under the series, with IDR38.25 billion (US$2.55 million)-worth of purchase orders.
It is notable that while DJPPR does not disclose the specific use of funds for its private placement cash Waqf-linked Sukuk series, the facilities are substantially larger than their retail series counterparts.
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Indonesian Government’s SW006 cash Waqf-linked Sukuk IDR50 billion (US$3.33 million)  3rd July 2023 |
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| Summary of terms and conditions | |
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Issuer |
Indonesian government |
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Size of issue |
IDR50 billion (US$3.33 million) |
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Mode of issue |
Private placement |
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Tenor |
Five years |
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Profit rate |
5.5% |
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Tradability |
No |