Indonesia to Name Three Banks Next Week for $650 Million Islamic Bond Sale

Indonesia’s government plans to name three banks next week to help it sell $650 million of Islamic bonds in October, a finance ministry official said.

“We will pick three names next week,” Dahlan Siamat, director for Islamic financing at the ministry, said in a telephone interview in Jakarta. Southeast Asia’s largest economy raised $650 million from selling its first-ever international Islamic dollar bonds in April last year, a transaction arranged by Barclays Plc, HSBC Holdings Plc and Standard Chartered Plc.

“The size will be approximately similar to that of last year,” he said. “That’s the indicative size and it will really depend on approval from the Minister of Finance and market demand.”

Indonesia has been selling bonds in domestic and international markets to help finance a budget deficit estimated at 2.1 percent of gross domestic product this year.

To contact the reporter on this story: Aloysius Unditu in Jakarta at aunditu@bloomberg.net;

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