BSI: Ordering Sustainable Sukuk Alami Excess Demand 300 Percent

BSI Finance and Strategy Director Ade Cahyo Nugroho. (Photo: Doc. Antara)

JAKARTA - PT Bank Syariah Indonesia Tbk (BSI) noted that bookings from investors for Sustainability Sukuk BSI or Sukuk Mudharabah Sustainability experienced three times oversubscribe or had reached 300 percent, equivalent to Rp9 trillion.

BSI Finance and Strategy Director Ade Cahyo Nugroho said that the company's management is optimistic that the BSI Sukuk Sustainability will be maximally absorbed by the market.

"We are optimistic that it will be optimally absorbed because the company's performance is currently above the average banking industry as well as from the idAA rating and is the first sukuk issued by BSI," said Ade in a written statement in Jakarta, quoted from Antara, Wednesday, June 5.

Ade said Sukuk Sustainability from BSI would be an attractive investment option for the community, especially young people.

For information, this investment instrument can also be owned by institutional and retail investors at a price of IDR 5 million per unit. But currently, note BSI, the majority of those who book from the institutional investor category.

Sukuk Sustainability was launched by BSI on Wednesday (15/5) with a first-stage issue of IDR 3 trillion. The yield range offered is between 6.40 percent and 7.20 percent with an initial offering period from 14-30 May 2024.

The sukuk from BSI consists of three series including series A with a period of 1 year, series B with a period of 2 years, and series C with a period of 3 years.

According to BSI, Sukuk Sustainability is currently in the final phase of licensing process from the Financial Services Authority (OJK). This sukuk can be bought by investors in securities companies in collaboration with companies such as Mandiri Sekuritas, BNI securities, BRI Danareksa Sekuritas, Trimegah Sekuritas, Mega Capital Sekuritas, and Maybank Sekuritas.

According to the company, the issuance of sukuk based on ESG complements a series of BSI activities in the capital market. Moreover, ESG sukuk is also an interesting thing because some investors often ask about the practice of ESG a company.

Based on the prospectus issued by the company, the funds raised from the issuance of Sustainability Sukuk BSI will be distributed to the Environmentally Introspective Business Activities (KUBL) sector with a portion of 30 percent to 50 percent and Social-Income Business Activities (KUBS) with a portion of 50 percent to 70 percent.