"The project-based Sukuk will be used to finance three projects, including the second segment of the Cirebon-Kroya double tracks, Manggarai-Bekasi double-double tracks, and renovation of the Hajj dormitories," the ministrys Director General of Debt Management Robert Pakpahan noted while signing the documents related to the project-based Shariah bonds here on Wednesday.
The construction of the second segment of the Cirebon-Kroya double tracks and Manggarai-Bekasi double-double tracks is estimated to cost Rp745 billion and Rp626 billion respectively.
Meanwhile, the government is expected to spend Rp200 billion on revitalizing the Hajj dormitories in Jakarta, Medan, Padang, and Balikpapan.
"With the inking of the documents, the three projects will be financed by Sukuk. In case no financing sources are available, the projects cannot be put to tender," Robert claimed.
The 10-year Sukuk offer a 9 percent yield, he noted.
The Ministry of Finance will issue the PBS series Sukuk during the second semester of 2014, he added.
The PBS series Sukuk was part of the governments plan to issue state Shariah-compliant bonds worth Rp60.37 trillion this year, he claimed.
Earlier, the government also sold four series of Sukuk, worth Rp1.5 trillion, in an auction on January 28, in a bid to partly achieve the financing target set in the 2014 state budget. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
