SINGAPORE: The Republic of Indonesia, rated Baa3/BB+/BBB-, has given initial price guidance for a dual-tranche US dollar sukuk offering.
A five-year tranche is indicated at a yield of 3.75 per cent area and a 10-year at 4.5 per cent area. Both tranches are expected to be benchmark size.
Perusahaan Penerbit SBSN Indonesia III is issuer of the sukuk, and the government is obligor. The senior unsecured sukuk wakala are expected to be rated Baa3/BBB- (Moody’s/Fitch).
Deutsche Bank, HSBC, Mandiri, National Bank of Abu Dhabi and Standard Chartered are joint bookrunners for the 144A/Reg S offering, which will price today. Bahana, Danareksa and Trimegah are co-managers.