Indonesia lists three sukuks worth $2.35bn on Nasdaq Dubai

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Indonesia has listed three Islamic bonds, or sukuks, with a total value of $2.35bn, under its $35bn trust certificate issuance programme on Nasdaq Dubai, the bourse said Wednesday.

The three tranches consist of $750m trust certificates due 2029, $1bn trust certificates due 2034 and $600m trust certificates due 2054, which is a green sukuk.

The new listing brings the Southeast Asia nation’s total value of issuances listed on the exchange to $24.1bn. It also cements Dubai’s position as the world’s leading centre for Islamic bond listings, with a total value of $96.39bn.

“The listings not only highlight the importance of Dubai as a hub for Islamic finance but also strengthen the economic ties between the UAE and Indonesia,” said Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market.

“The demand for these issuances demonstrates the confidence that global investors have in our market, reflecting Nasdaq Dubai’s commitment to providing a robust platform for both sukuk issuers and investors.”

The total debt listed on Nasdaq Dubai has reached $134.1bn, with sukuk comprising $93.89bn. The exchange also leads in sustainability-linked bond listings, with green issuances totalling $19.7bn out of the $29.75bn in ESG-related issuances.

“As Islamic finance remains concentrated in oil-exporting countries that aim to reduce their carbon footprints, we expect the increase in sustainable sukuk issuance will continue,” said S&P Global.

The ratings agency expects global sukuk issuance to reach $160-$170bn in 2024, up from $168.4bn at year-end 2023 and $179.4bn in 2022, including foreign currency-denominated issuance of $45-$50bn.

Read: MENA sukuk market flourishes in H1, fuelled by ESG, sovereign issuances