Heaptalk, Jakarta — Citi has been appointed as Joint Bookrunner regarding the issuance of Indonesia’s Triple Tranche Sukuk with yields of 5.4%, 5.5%, and 5.8% for tenors of 5, 10, and 30 years. This global sukuk issuance amounted to US$2.35 billion, consisting of US$750 million with a 5-year tenor, US$1 billion with a 10-year tenor, and US$600 with a 30-year tenor in 144A format.
The proceeds of this Sukuk issuance will support Indonesia’s government’s general financing requirements. The proceeds of the 30-year Gren Sukuk will be applied exclusively to finance or re-finance eligible SDG expenditures with a Green and Blue focus as defined in the Republic of Indonesia’s SDGs Government Securities Framework.
Indonesia’s Chief Executive Officer, Batara Sianturi, said, “This initiative aligns with Citi’s global intention to promote sustainable finance and support the communities where we operate. We look forward to the funds raised through this Green Sukuk issuance can advance the government’s green and blue initiatives as we work towards a more sustainable future,”
In Indonesia, this banking corporation has been involved in multiple critical sustainable finance deals, spanning a US$1 billion Green Sukuk (as part of a US$2 billion Sukuk offering) for Indonesia in 2023 by providing a joint social finance facility of US$41.3 million, and US$10 million to PT Permodalan Nasional Madani last year.
The Citi enterprise also grants co-financing for Bank BTN’s US$100 million low-to-middle income-affordable housing project and other critical transactions led by this banking company, including a US$4.2 billion global bond dual currency offering to support the country’s government’s COVID-19 relief efforts.
“Since the inception of the Green, Social, and Sustainability (GSS) bond market in 2014, investors and the market have been increasingly adopting a strategic approach to sustainability, integrating the Sustainable Development Goals (SDGs) into their investment frameworks. Therefore, we expect that this Green Sukuk will help finance Indonesia’s ambition to enhance the green economy sustainably,” said the Head of the Integrated Corporate Bank of Citi Indonesia, Anthonius Sehonamin.
