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Indonesia hires for dollar sukuk, could include Green tranche

Kitco News

By Frances Yoon

HONG KONG, Jan 23 (IFR) - The Republic of Indonesia , rated Baa3/BBB-/BBB, has appointed banks for a US dollar sukuk offering that could include the first offshore Green bond from an Asian sovereign.

Abu Dhabi Islamic Bank, CIMB, Citigroup, Dubai Islamic Bank and HSBC are joint bookrunners.

A series of fixed income investor meetings in Asia, Europe and the Middle East will start tomorrow.

The proposed 144A/Reg S offering will be issued under the Republic's $25 billion trust certificate issuance programme, including a sukuk offering under the sovereign's Green sukuk framework.

The sukuk maturities are expected to be of five and 10 years, and the issuer may also consider the possibility of a longer dated tranche.

Poland was the first sovereign to issue Green bonds, in a euro-denominated transaction in late 2016. In Asia, Hong Kong has also expressed interest in issuing Green bonds.

Indonesia last issued dollar bonds in December, when it completed a $4 billion transaction split across three tenors.

(Reporting by Frances Yoon; editing by Daniel Stanton)

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