Govt offers first-ever Sukuk bonds

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The  government has announced its offer for the inaugural Sukuk bond issuance.

In an announcement released by the Department of Finance (DOF) yesterday, the Philippines has mandated Citigroup, Deutsche Bank, Dubai Islamic Bank, HSBC, MUFG and Standard Chartered Bank as joint bookrunners and joint lead managers of the transaction.

They are tasked to arrange a series of fixed income investor calls in Asia, Europe, Middle East and the United States, commencing November 27.

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According to the DOF document, a benchmark-sized US dollar-denominated Sukuk offering in 5.5-year tenor may follow, subject to market conditions.

A benchmark-size offering usually refers to at least $500 million.

If successful, the document pointed out that it will be the Philippines’ maiden Sukuk issue after conducting a Philippine Economic Briefing in Dubai last September, with a target of diversifying the investor base towards Middle Eastern and Islamic countries.

The Sukuk offering will be issued by ROP Sukuk Trust, a special purpose trust formed under Philippine law and administered by the Land Bank of the Philippines-Trust Banking Group. – Angela Celis

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