Indonesian retailer aims to raise $53 mln from bonds, sukuk

JAKARTA Nov 13 (Reuters) - Indonesian retail firm, PT Mitra Adiperkasa Tbk (MAPI.JK), said on Friday it plans to raise a total of 500 billion rupiah ($53.36 million) from the sale of conventional and Islamic bonds.

The firm, which holds distribution licences for premium brands such as Emporio Armani and Calvin Klein, plans to sell 200 billion rupiah of ijarah sale-and-leaseback sukuk and 300 billion rupiah of conventional bonds, to be offered between Dec. 8-10.

The firm plans to issue the conventional bond and the sukuk, each with maturities of three and five years.

The three-year tranche has an indicative yield of between 250 and 375 basis points above the government bond FR23 IDFR0023=, implying a yield range of 11.12-12.37 percent.

The five year tranche has an indicative yield of between 250 and 375 basis points above the government bond FR26 IDFR0026=, or, about 11.82-13.07 percent.

The proceeds would be used for refinancing, the firm said. It has appointed Danareksa Sekuritas, HSBC Securities Indonesia, Indopremier Securities, and Standard Chartered Securities Indonesia as underwriters.

More Indonesian firms have shown an interest in selling sharia-compliant debt. Parliament passed a bill earlier this year scrapping double taxation for sharia transactions.

Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets. ($1 = 9,370 rupiah) (Reporting by Sonya Angraini; Writing by Andreas Ismar; Editing by Sara Webb)