Jakarta, 19th February, 2016 (WAM) – The government aims to earn Rp25 trillion-Rp30 trillion in funds from the issuance of state retail sharia bonds series SR-008 which has just been launched to raise public funds to finance the state budget.

“Our target is Rp25 trillion-Rp30 trillion. If demand is high we will upsize (the bonds) to up to Rp30 trillion,” Director General of Financing and Risk Management at the Finance Ministry Robert Pakpahan, was quoted by Indonesian News Agency, ANTARA, as saying in a press briefing here on Thursday.

He said the government has received orders from sales agents for the bonds worth Rp43 trillion or higher than the indicative target.

The retail sukuk SR-008 will be issued on March 10, 2016 by virtue of Asset to be Leased Ijarah, with projects or activities of the state budget 2016 and state property in the form of land and buildings as underlying assets.

The sukuk which will be issued at a coupon of 8.3 percent per year will be offered from February 19 to March 4, with a minimum subscription of Rp5 million and a maximum subscription of Rp5 billion.

Yield on the retail sukuk series SR-008 due on March 10, 2019 will be paid every 10th with the first payment on April 10, 2016.

The government also has appointed 20 banks and six securities companies as sale agents for the retail sukuk series SR-008.

WAM/tfaham