White & Case Advises Republic Of Indonesia on Its Largest Ever Sukuk Issuance
Global law firm White & Case LLP has advised the Republic of Indonesia on its US$2 billion, ten-year Sukuk al-Wakala issue priced at 4.325 per cent.
The Sukuk, which is the Republic of Indonesia's largest dollar Islamic bond ever, was sold through special purpose vehicle Perusahaan Penerbit SBSN Indonesia III and under the sovereign’s existing trust certificate issuance programme, the limit for which was increased from US$5 billion to US$10 billion.
The transaction was well received globally and generated a large order book, with orders exceeding US$ 6.8 billion from 240 investors, resulting in more than 3.4 times oversubscription. The ten-year Sukuk al-Wakala attracted interest from a diverse group of domestic and international investors, generating a geographic distribution of 41 percent to Islamic and Middle East investors, ten percent to Indonesian investors, 12 percent to investors in Asia (excluding Indonesia), 21 percent to USA investors and 16 percent to European Investors.
CIMB, Dubai Islamic Bank, HSBC and JP Morgan acted as Joint Lead Managers and Joint Bookrunners. Arab Banking Corporation, National Bank of Abu Dhabi, PT Danareksa Securities and PT Mandiri Securities acted as Co-managers for the transaction.
UAE-based White & Case partner Shibeer Ahmed, who together with Singapore-based partner Kaya Proudian led the Firm's deal team, said: "This transaction is further evidence of our market leading Islamic finance practice and our highly regarded sovereign debt practice." White & Case previously advised the Joint Lead Managers on the issuance by the Republic of Indonesia of its US$1.5 billion, 4.35 percent Sukuk due 2024.
The White & Case team which advised on the transaction included partners Shibeer Ahmed (UAE) and Kaya Proudian (Singapore) with support from associates Hendy Handoko (Singapore), Faris Al Amoudi (UAE) and Sarita Malakar (Singapore).
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