Indonesia pushes sukuk boundaries with 10-year tenor

The Republic of Indonesia printed its first 10-year sukuk early Thursday morning, raising $1 billion as it took advantage of demand for long-dated bonds.

Sukuk investors typically favour short tenors in the three- to five-year range, and Indonesia is one of only a handful of borrowers in the world to be able to sell  longer-dated paper. It isn’t the first in Asia, however Malaysia issued a 10-year sukuk in 2011, as has Maybank in the past.

Anchored by Middle Eastern accounts, the leads went out with initial guidance at the 3.5% area on Wednesday. At this point, one investor described the pricing as “aggressive”. Despite this,...