Indonesia's Finance Ministry attributed the record-breaking success of the SR-008 Islamic bond series to a better understanding of Indonesian retail investors about Islamic investment instruments and the solid efforts of the sales agents. Twenty banks and six securities firms had been appointed by the Indonesian government to serve as sales agents for this issuance. Sukri bonds are only available to Indonesian citizens.

The sale of the shariah-compliant SR-008 series is part of government efforts to finance the government's 2016 budget deficit while also deepening the local bond market. Initially, the government targeted to raise between IDR 25 trillion and IDR 30 trillion from this sale. Indonesia's budget deficit in 2016 is estimated at IDR 273.2 trillion, equivalent to 2.15 percent of the nation's gross domestic product (GDP).

Further Reading: Indonesia's Islamic Banking Industry

SR-008 Sukri Series Indonesia
Issuer
Perusahaan Penerbit SBSN Indonesia
Series SR-008
Bond Type Scripless (can be traded on secondary market)
Nominal Value IDR 1,000,000 per unit
Offering Period 19 February - 4 March 2016
Issuance Date 10 March 2016
Listing Date on IDX 11 March 2016
Maturity Date 10 March 2019
Min - Max Subscription IDR 5 million - IDR 5 billion
Coupon Rate 8.3%
Coupon Payment Date Every 10th of the month
First Coupon Date 11 April 2016
Minimum Holding Period 1 time coupon payment

Source: Finance Ministry

History of Sukri Bonds in Indonesia:

Serie Coupon Listing Date Maturity Date
    Sold
(in IDR trln)
Number of
 Investors
SR-001  12.0% 25/02/2012  25/02/2012      5.55    14,295
SR-002  8.70% 10/02/2010  10/02/2013      8.03    17,231
SR-003  8.15% 23/02/2011  23/02/2014      7.34    15,487
SR-004  6.25% 21/03/2012  25/09/2015     19.00    17,606
SR-005  6.00% 27/02/2013  27/02/2016     20.87    17,783
SR-006  8.75% 05/03/2014  05/03/2017     19.35    34,692
SR-007  8.25% 11/03/2015  11/03/2018     21.97    29,706
SR-008  8.30% 11/03/2016  10/03/2019     31.50    48,444

Sources: Kontan & Jakarta Globe

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