Indonesia concludes funding needs with $1.5 billion sukuk

The sovereign launches sukuk amid challenging conditions and pays the highest coupon since 2009.

The Republic of Indonesia closed a $1.5 billion sukuk on Wednesday morning, the largest single-tranche sukuk from an Asian sovereign borrower, and paid the highest coupon since 2009, according to Dealogic.

Indonesia, once a darling among investors, has seen foreign investors pull out of its bond markets. Like India, the country has been hard hit by the sell-off in emerging markets. The country is battling a current account deficit that widened to 4.4% of its GDP during the second quarter, while the rupiah has also depreciated sharply.

Against this challenging backdrop, the sovereign concluded its funding needs for the year, bringing its total funding size for the...

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