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Indonesia's Bakrieland aims to raise $29 mln from sukuk

JAKARTA, May 26 (Reuters) - Indonesian property firm PT Bakrieland Development Tbk ELTY.JK said on Tuesday it wants to raise up to 300 billion rupiah ($29 million) from an Islamic bond issue, or twice the amount previously indicated. Bakrieland, part of the corporate empire controlled by the family of Indonesian cabinet minister Aburizal Bakrie, said it has appointed PT Bahana Securities and PT Madani Securities as underwriters for the sukuk, due to be issued in July.

President director Hiramsyah Thaib said the size of the bond would be increased if there was sufficient demand from investors, adding that the proceeds would be used to develop residential projects and centres for small businesses. The firm plans to issue a two-year tranche with an indicative yield of 14-15 percent, and a three-year tranche with an indicative yield of 15-16 percent.

The offering period runs from May 25 to June 12, and the bonds will be listed on the exchange on July 8. ($1 = 10335 rupiah) (Writing by Andreas Ismar; Editing by Sara Webb)

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