AhlulBayt News Agency

source :
Monday

15 June 2009

7:30:00 PM
156468

Indonesia: Ministry to invest Haj funds in Islamic bonds

The Religious Affairs Ministry will put Rp 9 trillion (US$828 million) of Haj and Ummah Trust funds in sukuk (Islamic bonds) to better manage the funds for the benefit of Muslims who want to conduct Haj pilgrimage.

For the first installment, the ministry will put Rp 1.5 trillion of funds in sukuk through a private placement system in May, Religious Affairs Minister Maftuh Basyuni said Wednesday during a signing of memorandum of understandings (MoU) with the Finance Ministry.

"Deposits above Rp 2 billion in banks are not guaranteed, while the government fully guarantees sukuk. The money can also be used for the benefit of people," said Maftuh.

The one-year non-tradable sukuk, named the Indonesian Haj Funds Sukuk (SDHI) will have a coupon of 8.52 percent, according to the Finance Ministry.

The Religious Affairs Ministry now manages Rp 15.24 trillion and $59.19 million of Haj funds and Rp 713.45 billion and $66.21 million of Ummah Trust funds.

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