UPDATE 1-Indonesia launches 5-yr, 10-yr US dollar sukuk at 5.65%, 5.85% areas - term sheet

(Adds details from the term sheet from paragraph 2 to 6)

SINGAPORE, Nov 7 (Reuters) - Indonesia launched a five-year U.S dollar sukuk or Islamic bond on Tuesday with initial price guidance in the 5.65% area and a 10-year green U.S dollar sukuk in the 5.85% area, according to a term sheet seen by Reuters.

Perusahaan Penerbit SBSN Indonesia III is the sukuk issuer while Indonesia is the obligor of the notes, which are expected to have Baa2, BBB, BBB under rating agencies Moody's, S&P and Fitch respectively, the sheet showed.

Indonesia intends to use the net proceeds from the five-year sukuk to meet part of its general financing requirements, according to the term sheet. It did not give a value for the total planned issurance.

It will invest an amount equal to the net proceeds from the issue of the 10-year green sukuk exclusively to finance or refinance expenditure directly related to "green and blue focus" projects, the sheet showed.

CIMB, Citigroup, Dubai Islamic Bank , Mandiri Securities and Standard Chartered are joint bookrunners, according to the sheeet.

BRI Danareksa Sekuritas and Trimegah Sekuritas Indonesia are co-managers of the issuances, the sheet showed. (Reporting by Scott Murdoch in Sydney and Yantoultra Ngui in Singapore; Editing by Kim Coghill)