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Indonesia hires four banks to lead global sukuk

Wednesday, May 6, 2015 - 16:18

[SINGAPORE] The Republic of Indonesia has mandated CIMB, Dubai Islamic Bank, HSBC and JP Morgan as joint lead managers for a potential offering of 144A/Reg S sukuk bonds, which are expected to be denominated in US dollars.

On Friday, the sovereign will embark on a series of investor meetings in Asia, Europe and the Middle East. Pending market conditions, an offering may materialise.

Indonesia's plans for the Islamic bond come after Malaysia tied up a hugely successful US$1.5bn dual-tranche global sukuk in mid-April in a move that removed a premium that sukuk issues used to pay over conventional paper. Malaysia had priced a 10-year tranche to yield 115bp over US Treasuries, as well as a 30-year to yield 170bp over UST.

Indonesia, rated Baa3/BB+/BBB- (Moody's/S&P/Fitch), will start presentations in London on May 8, before moving to Jeddah on May 10, Dubai on May 11, Abu Dhabi/Dubai on May 12, Doha on May 13 and Kuala Lumpur on May 14.

REUTERS