Fitch rates Indonesia certificates BBB

Fitch Ratings said it assigned an expected BBB rating to Indonesia's proposed dollar-denominated sovereign global certificates, which may include one green tranche.

The expected rating is in line with Indonesia's long-term foreign-currency issuer default rating of BBB.

The sukuk will be issued through Perusahaan Penerbit SBSN Indonesia III (PPSI-III), which is also the trustee, Fitch noted.

PPSI-III is a legal entity in Indonesia set up solely for the purpose of issuing sharia-compliant securities of the Indonesian government in foreign currencies in the international markets, the agency explained.

The issuer is contemplating multiple tranches for the proposed sukuk transaction in which one tranche or more may be in the form of a green sukuk, Fitch said.

The proceeds from the green sukuk tranche are likely to be used to finance or refinance green projects, the agency said.

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