A shortage of Islamic sovereign debt saw Indonesia’s new dollar-denominated sukuk rally two times faster than non-Islamic securities this week after the sale attracted $5 billion in orders for $1 billion on offer.
The Southeast Asian nation sold the bonds maturing in 2022 at a coupon of 3.3 percent, its third issuance since 2009. The yield fell 17 basis points to 3.13 percent from Nov. 19, compared with an eight basis point decline to 2.91 percent on the 2022 notes that don’t comply with religious tenets. In the international market, Shariah-compliant borrowing costs are at a record-low 2.82 percent………………………………………..Full Article: Source