By Cristal Cody
Chicago, Sept. 14 – Republic of Indonesia sold a three-part bond offering (Baa2/BBB/BBB) on Monday, according to multiple FWP filings with the Securities and Exchange Commission and additional details from a market source.
The republic sold two dollar-denominated tranches.
The first dollar tranche for $600 million in a reopening tap of the republic’s 2.15% bonds due July 28, 2031 priced at 99.734 to yield 2.18%. Talk had been for a yield in the 2.5% area.
The notes priced with a spread of Treasuries plus 132.2 basis points.
The notes can be optionally redeemed at par plus interest three months before the maturity date.
The reopening will be combined with the original $600 million of bonds issued on July 28.
The second dollar tranche of $650 million of 3.2% bonds with a 40-year tenor priced at 98.225 to yield 3.28%. The notes priced with a spread of 138.2 bps over the related U.S. Treasury. Talk had been in the 3.6% area.
The notes can be called at par 60 days before they mature.
The republic also sold euro-denominated notes. A €500 million series due March 23, 2034 priced with a 1.3% coupon at 99.419 to yield 1.351%. The spread priced at Bunds plus 168.2 bps, or mid-swaps plus 118 bps.
The notes can be redeemed early at par plus interest, three months before the maturity date.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Singapore Branch, Hongkong and Shanghai Banking Corp. Ltd. and UBS AG Singapore Branch are the joint lead managers and joint bookrunners.
Proceeds will be used to repurchase existing bonds under a tender offer.
| Issuer: | Republic of Indonesia
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| Issue: | Bonds
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| Amount: | $1.25 billion, €500 million
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Singapore Branch, Hongkong and Shanghai Banking Corp. Ltd. and UBS AG Singapore Branch
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| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
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| Trade date: | Sept. 13
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| Settlement date: | Sept. 23
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| 2031 notes add-on
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| Amount: | $600 million
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| Maturity: | July 28, 2031
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| Coupon: | 2.15%
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| Price: | 99.734
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| Yield: | 2.18%
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| Spread: | Treasuries plus 132.2 bps
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| Call features: | At par plus interest starting three months before maturity
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| Price talk: | 2.5% area
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| Cusip: | 455780CY0
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| Total issue size: | $1.2 billion with $600 million of notes priced July 28
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| 2061 bonds
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| Amount: | $650 million
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| Maturity: | Sept. 23, 2061
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| Coupon: | 3.2%
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| Price: | 98.225
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| Yield: | 3.28%
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| Spread: | Treasuries plus 189.8 bps
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| Call features: | At par plus interest starting six months before maturity
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| Price talk: | 3.6% area
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| Cusip: | 455780DG8
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| Euro notes
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| Amount: | €500 million
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| Maturity: | March 23, 2034
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| Coupon: | 1.3%
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| Price: | 99.419
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| Yield: | 1.351%
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| Spread: | Bunds plus 168.2 bps, or mid-swaps plus 118 bps
|
| Call features: | At par plus interest starting three months before maturity
|
| ISIN: | XS2387734317
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