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Indonesia lists world’s largest sovereign sukuk in Dubai

Listing “will further strengthen global confidence” in the emirate as “the capital of the Islamic economy”

In the largest issuance by a sovereign issuer on Nasdaq Dubai, Indonesia on Sunday listed four sukuk valued at AED22 billion.

The Islamic bonds listings comprise one issuance of AED7.3bn, two of AED5.5bn each and one of AED3.7bn.

Bambang Bodjonegoro, the Minister of Finance for Indonesia, rang the market-opening bell to celebrate the listing under his government’s Trust Certificate Issuance Programme.

Bodjonegoro said the listing was an important step forward for his country to further strengthen the links between Indonesia, the UAE and the wider Middle East.

“Indonesia is very proud to be able to actively participate in developing the sukuk market,” he said, adding that the country is not only a frequent sukuk issuer in the domestic market, but also in the global market. “Since our international debut in 2009, we have issued global sukuk valued at AED28bn. In 2012 we entered into a Trust Certificate Issuance Program, which currently has four series of outstanding sukuk valued at AED22bn.”

Dubai is the world’s leading sukuk centre by all listed bonds amounting to nominal value of AED135bn. With the new listings, Nasdaq Dubai, the financial exchange serving the region between Western Europe and East Asia, accounts for 93 per cent of the city’s total sukuk value.

Nasdaq Dubai attracted sukuk listings valued at AED50bn in 2014 and has added AED46bn so far in 2015.

His Excellency Mohammed Abdulla Al Gergawi, UAE Cabinet Affairs Minister and Chairman of the Board of the Dubai Islamic Economy Development Centre (DIEDC), said that the “listing of sovereign sukuk by the largest Muslim country will play a significant role in attracting further sukuk from around the world and further strengthen global confidence in Dubai as the capital of the Islamic economy.”