Indonesia offers to purchase nine series of global notes up to a cap

By Rebecca Melvin

Concord, N.H., March 22 – Republic of Indonesia started a cash tender offer for nine series of global bonds for up to a maximum purchase price that has not yet been determined.

The republic is offering to buy from the following series of notes:

• The $1 billion outstanding 2.95% global bonds due Jan. 11, 2023 (ISINs: US455780CC89) for a purchase price based on the 1.5% Treasury note due Feb. 29, 2024 minus 86 basis points, equating hypothetically to $1,013.42 per note;

• The $1,260,950,000 3 3/8% global bonds due April 15, 2023 (ISINs: USY20721BD05, US455780BL97) for a purchase price based on the 2024 Treasury note minus 49 bps, equating hypothetically to $1,018.25 per note;

• The $819,219,000 5 3/8% global bonds due Oct. 17, 2023 (ISINs: USY20721BH19, US455780BP02) for a purchase price based on the 2024 Treasury note minus 17 bps, equating hypothetically to $1,052.57 per note;

• The $2 billion 5 7/8% global bonds due Jan. 15, 2024 (ISINs: USY20721BJ74, US455780BQ84) for a purchase price based on the 2024 Treasury note plus 7 bps, equating hypothetically to $1,065.04 per note;

• The $526,115,000 4.45% global bonds due Feb. 11, 2024 (ISIN: US455780CG93) for a purchase price based on the 2024 Treasury note plus 15 bps, equating hypothetically to $1,039.98;

• The $2 billion 4 1/8% global bonds due Jan. 15, 2025 (ISINs: USY20721BG36, US455780BT24) for a purchase price based on the 2024 Treasury plus 45 bps, equating hypothetically to $1,042.05 per note;

• The $2.25 billion 4¾% global bonds due Jan. 8, 2026 (ISINs: USY20721BN86, US455780BV79) for a purchase price based on the 1 7/8% Treasury note due Feb. 28, 2027 plus 47 bps, equating hypothetically to $1,070,08 per note.

• The $1.25 billion outstanding 4.35% global bonds due Jan. 8, 2027 (ISINs: USY20721BQ18, US455780BX36) for a purchase price based on the 2027 Treasury note plus 53 bps, equating hypothetically to $1,066.85 per note; and

• The $1 billion outstanding 3.85% global bonds due July 18, 2027 (ISINs: USY20721BT56, US455780CA24) for a purchase price based on the 2027 Treasury note plus 60 bps, equating hypothetically to $1,045.41 per note.

The purchase prices are for each $1,000 principal amount of notes.

The offers are subject to proration.

The republic is expected to announce the maximum cash consideration at 10 a.m. ET on March 23, with pricing expected to occur at 9 a.m. ET on March 28.

No later than 10 a.m. ET on March 29, the republic will announce whether the financing condition has been satisfied, the principal amount of each series of old bonds accepted for purchase, the proration factors (if any), the purchase price, the benchmark reference security yield and the repurchase yield.

Settlement is expected to occur March 31.

Dealer managers for the offer are Citigroup Global Markets Inc. (+852 2501 2692, 212 723-0859, +44 20 7986 8969, liabilitymanagement.asia@citi.com), Deutsche Bank AG Singapore Branch, (+65 6423 4229, aslayyn@list.db.com), Mandiri Securities Pte. Ltd. (+65 6589 3880, dcmgroup@manfirisek.co.id), Societe Generale (33 142 13 21 40, 65 6326 7034, liability.management@sgcib.com) and Standard Chartered Bank (+65 6557 8289, 85 2398 38658, 44 207 885 5739, liability_management@sc.com).

The tender and information agent is Morrow Sodali Ltd. (+852 2319 4130, 203 609-4910, +44 20 4513 6933, RoI@investor.morrowsodali.com, https://bonds.morrowsodali.com/roi).

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