Indonesia has raised US$2.5 billion from a three-tranche global sukuk (sharia-compliant bond) offering to help the government fund the battle against the coronavirus pandemic, the Finance Ministry announced on Wednesday.The sukuk were offered on the Singapore stock exchange and NASDAQ Dubai in the United Arab Emirates on Wednesday. The 10-year maturity sukuk brought in $1 billion, and the five-year and 30-year maturities amounted to $750 million each. The settlement date is set for June 23.Read also: Indonesia raises another $4b from bonds, in talks with development banks The yield of the most recent 5-year sukuk is 2.3 percent, while those of the 10-year and the 30-year sukuk are 2.8 percent and 3.8 percent respectively. The yields are the lowest in the country’s history of global sukuk offerings.The issuance was oversubscribed by $16.66 billion, or 6.7 times its target, reflecting a relatively strong international investor appetite for the instruments.“The global sukuk issuance received a great response from local and global investors alike despite highly volatile market conditions,” the statement read.Read also: Investing in bonds safe bet amid market volatility: ExpertsMore than half of the sukuk’s value was backed by state assets in the form of land and buildings as underlying assets, while 49 percent of the sukuk’s value was backed by government projects.BNP Paribas, Dubai Islamic Bank, HSBC, Maybank and Standard Chartered acted as joint lead managers and joint bookrunners. BNP Paribas and HSBC also acted as joint green structuring advisors.”The global sukuk is attractive to investors as the rupiah is strengthening, inflation remains low and the yield differential rate is attractive compared to those of developed countries,” Anthony Kevin of Mirae Asset Sekuritas Indonesia told The Jakarta Post on Thursday.”However, we expect investor confidence to deteriorate over the coming months as the economy shrinks in the second quarter, triggering selloffs of the rupiah and Indonesian bonds,” he said.Topics : “The transaction is in line with the government’s financing plan, including to accommodate the state budget’s need to mitigate the impacts of the COVID-19 pandemic, as well as to strengthen Indonesia’s position in the global sharia financial market,” the ministry said in a statement.The government has unveiled a Rp 695.2 trillion ($49 billion) stimulus package to fight the economic and public health impacts of COVID-19. It expects the deficit to reach 6.34 percent of gross domestic product (GDP) this year.Indonesia had sold Rp 369 trillion worth of government bonds as of May, an increase of 98.3 percent from the same period last year. The government is planning to issue another Rp 990 trillion worth of government bonds, including samurai bonds and diaspora bonds, from June to December of this year to cover the widening deficit.The sukuk offering was Indonesia’s third global debt issuance this year. In January, the country raised more than $3 billion from dollar- and euro-denominated bonds, followed by a $4.3 billion triple-tranche bond offering, which included a 50-year bond, in April to help fund coronavirus relief.