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Fitch rates Indonesia's dollar Sukuk BBB

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The rating is in line with Indonesia's long term foreign-currency issuer default rating (IDR) of BBB.

Sunday 03, February 2019 BY KUDAKWASHE MUZORIWA

Fitch Ratings has assigned BBB rating to Indonesia's proposed US dollar-denominated sovereign Sukuk -- which may include one green tranche.

In a statement, the rating agency stated that the proceeds from the green Sukuk tranche are likely to be used to finance or refinance green projects.

Indonesia is said to be planning multiple tranches for the proposed Sukuk transaction where one tranche or more may be in the form of green Islamic bonds.

The Sukuk will be issued through Perusahaan Penerbit SBSN Indonesia III (PPSI-III), a legal entity set up solely for the purpose of issuing Shari’ah-compliant securities of the Indonesian government in foreign currencies in the international markets.

TAGS : Green Sukuk, US dollar-denominated, Perusahaan Penerbit SBSN Indonesia III

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