UPDATE 1-Government of Sharjah hires banks for 30-yr Formosa bonds - document

(Adds details from source, background)

DUBAI, July 13 (Reuters) - Sharjah, the third-largest emirate of the United Arab Emirates, has hired banks to arrange the issuance of U.S. dollar-denominated 30-year Formosa bonds, a document showed on Monday.

Sharjah has hired Citi, Emirates NBD Capital, HSBC, Invest Bank, JPMorgan and Standard Chartered to arrange an investor call on Monday, to be followed by the issuance, subject to market conditions, the document from one of the banks arranging the deal showed.

It would be Sharjah’s first Formosa, first long-dated and first conventional benchmark bond, said a source close to the deal. Benchmark generally means at least $500 million.

The government issued a conventional Panda bond - yuan-denominated debt issued by foreign borrowers - in 2018, but the size was about 2 billion yuan ($286 million), the source said.

The emirate’s longest maturity in the public market so far is 10 years.

“The 30 years duration and the Formosa market would allow Sharjah to tap a new investor base,” the source said.

Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar.

Sharjah sold $500 million in five-year sukuk, or Islamic bonds, last month.

The Formosa bonds would be listed on Euronext Dublin, Nasdaq Dubai and Taipei Exchange, the document said.

$1 = 6.9986 Chinese yuan renminbi Reporting by Yousef Saba and Davide Barbuscia; Editing by Muralikumar Anantharaman and Mark Potter