PT Pegadaian to Raise IDR 1.125 Trillion through Securities Including Sukuk Worth IDR 375 Billion

PT Pegadaian, an auction house owned by the Government of Indonesia, aims to raise IDR 1.125 trillion (USD 81 million) worth funding for working capital requirements, through a three-tranche securities issuance, according to the offer document. According to media reports, the deal will include an IDR 375 billion Sukuk Mudarabah element.

The indicative rate of return for both Shariah-compliant securities as well as conventional securities is expected to range between 6.25% - 7.25% for a 370-day tranche, whilst the 3-year tranche is expected to carry a rate between 7.15%-8.15%.  Meanwhile, the five-year tranche is expected to yield returns in the range of 7.50% - 8.60%.   

Book-buildin...