Chicago, July 22 – The Republic of Indonesia sold a four-part megadeal on Wednesday with three parts denominated in dollars and one part in euros (BBB/BBB), according to market sources and multiple FWP filings with the Securities and Exchange Commission.
Dollar notes
The republic priced one tranche of new notes and two issues of add-on notes that will become fungible with earlier issues.
The new notes are the $600 million of 2.15% 10-year bonds that priced at 99.553 to yield 2.2%. The notes priced with a spread of 90.8 basis points over Treasuries. Initial price talk had been for a yield in the 2.55% area.
The new notes can be redeemed three months prior to maturity at Indonesia’s option at par plus interest.
The first add-on is for $750 million of 3.05% bonds due March 12, 2051. The notes priced at 99.031 to yield 3.1%.
The 2051 bonds are a further issuance of, and will form a single series with, the sovereign’s existing $1.25 billion of bonds (ISIN: US455780CW44) issued on Jan. 12, 2021.
The add-on notes priced with a spread of Treasuries plus 114.1 bps. Price talk was for a yield in the 3.45% area.
The republic also sold a $300 million tap of its 3.35% bonds due March 12, 2071. The notes priced at 99.995 to yield 3.35%.
The 2071 bonds are a further issuance of, and will form a single series with, an existing $500 million of bonds (ISIN: US455780CX27) issued on Jan. 12, 2021.
The notes priced with a Treasuries plus 139.1 bps spread. Talk was for a 3.7% yield.
Joint lead managers and joint bookrunners for the dollar notes were BNP Paribas, BofA Securities, Inc., Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch and HSBC Ltd.
Euro notes
Indonesia also priced a €500 million tranche of 1% eight-year bonds.
The notes priced at 99.481 to yield 1.068%.
The spread was mid-swaps plus 122 bps.
BNP Paribas, Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch, Merrill Lynch (Singapore) Pte. Ltd. and HSBC Ltd. are joint lead managers and underwriters for the euro issue.
The new notes are redeemable three months before maturity at par plus interest.
The proceeds of the bonds will be used for general purposes, including Covid-19 relief.
Application has been made to list the bonds on the Singapore Exchange Securities Trading Ltd. and the open market of the Frankfurt Stock Exchange.
| Issuer: | Republic of Indonesia
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| Issue: | Bonds
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| Amount: | $1.65 billion and €500 million
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| Trade date: | July 21
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| Settlement date: | July 28
|
| Ratings: | S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| New dollar notes
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| Amount: | $600 million
|
| Maturity: | July 28, 2031
|
| Bookrunners: | BNP Paribas, BofA Securities, Inc., Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch and HSBC Ltd.
|
| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
|
| Coupon: | 2.15%
|
| Price: | 99.553
|
| Yield: | 2.2%
|
| Spread: | Treasuries plus 90.8 bps
|
| Call features: | Par call three months before maturity
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| Price talk: | 2.55% area
|
| Cusip: | 455780CY0
|
|
|
| 2051 add-on
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| Amount: | $750 million
|
| Maturity: | March 12, 2051
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| Bookrunners: | BNP Paribas, BofA Securities, Inc., Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch and HSBC Ltd.
|
| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
|
| Coupon: | 3.05%
|
| Price: | 99.031
|
| Yield: | 3.1%
|
| Spread: | Treasuries plus 114.1 bps
|
| Price talk: | 3.45% area
|
| Original issue: | $1.25 billion of bonds issued on Jan. 12, 2021
|
|
|
| 2071 add-on
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| Amount: | $300 million
|
| Maturity: | March 12, 2071
|
| Bookrunners: | BNP Paribas, BofA Securities, Inc., Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch and HSBC Ltd.
|
| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
|
| Coupon: | 3.35%
|
| Price: | 99.995
|
| Yield: | 3.35%
|
| Spread: | Treasuries plus 139.1 bps
|
| Price talk: | 3.7% area
|
| Original issue: | $500 million of bonds issued on Jan. 12, 2021
|
|
|
| New euro notes
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| Amount: | €500 million
|
| Maturity: | July 28, 2029
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| Bookrunners: | BNP Paribas, Credit Agricole CIB, Singapore Branch, Deutsche Bank AG, Singapore Branch, Merrill Lynch (Singapore) Pte. Ltd. and HSBC Ltd.
|
| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
|
| Coupon: | 1%
|
| Price: | 99.481
|
| Yield: | 1.068%
|
| Spread: | Mid-swaps plus 122 bps
|
| Call features: | Par call three months before maturity
|
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