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Indonesia appoints sukuk trustee

Bank of New York Mellon is selected to provide corporate trust services for Indonesia's first sharia-compliant, US dollar sovereign sukuk.
Indonesia has appointed the Bank of New York Mellon to provide corporate trust services for its first sharia-compliant, US dollar-denominated sovereign sukuk. Priced at $650 million, the five-year term ijara sukuk -- or Islamic bond ­-- was launched by the Perusahaan Penerbit SBSN Indonesia I (PPSI-I) special purpose vehicle with rights over 66 government properties. It has an annual fixed-rate yield of 8.8% payable annually or biannually. An ijara sukuk is a bond sale-leaseback agre…
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