Clifford Chance has advised the Republic of Indonesia on the offering of $1.25 billion of “green” sukuk, or sharia-compliant investments in renewable energy and other environmental assets. Indonesia is the first Asian sovereign to issue the same.
Norton Rose Fulbright, meanwhile, advised Abu Dhabi Islamic Bank PJSC, Citigroup, CIMB, Dubai Islamic Bank PJSC and HSBC, which were the joint lead managers and joint bookrunners on the transaction.
The five-year green wakala sukuk issuance was Indonesia’s first under its recently established Green Bond and Green Sukuk framework. Proceeds for the green sukuk will be used on eligible projects, ranging from renewable energy to waste management.
Reuters said that the sale could help open the door for more crossover deals across Asia, as religious and environmentally-minded investors find a middle ground in the sukuk funding format. Such a convergence of investment principles could widen the appeal of sukuk beyond Asia and the Middle East to include ethical investors in Western countries.
The Clifford Chance team was led by partners Johannes Juette in Singapore and Qudeer Latif in Dubai. The Norton Rose Fulbright team was led by partner Vicky Münzer-Jones, in Singapore, with support from partners Gregory Man in Dubai and David Johnson in Hong Kong.
