By Cristal Cody
Chicago, Sept. 7 – Republic of Indonesia priced a $2.65 billion new offering of bonds in three parts (Baa2/BBB/BBB) on Tuesdsay, according to multiple FWP filings with the Securities and Exchange Commission.
A five-year tranche priced as $750 million of 4.15% bonds, sold with a 98.889 discount to yield 4.4%. The spread priced as 94.5 basis points over the benchmark Treasury.
A 10-year tranche was allocated at $1.4 billion. The new bonds priced with a 4.65% coupon at 98.82 to yield 4.8%, or with a spread of 144.9 bps over Treasuries.
A 30-year tranche was sized at $500 million. The tranche has a 5.45% coupon and priced with a 98.547 discount to yield 5.55%, or at a spread of 203.1 bps over Treasuries.
Initial price talk on the five-year notes was in the 4.7% area, for the 10-year notes in the 5.15% area and for the 30-year notes in the 6% area, according to a market source.
The first two bonds are callable at par in the last three months before their maturity dates. Similarly, the longest tranche is callable at par at any time during the last six months.
BofA Securities, Inc., Credit Suisse (Singapore) Ltd., Deutsche Bank AG London Branch (billing and delivery), HSBC Ltd. and J.P. Morgan Securities plc are acting as joint lead managers.
Proceeds will be used to fund a tender offer with any remaining proceeds slated for general purposes of the republic.
The notes will be listed on the Singapore Exchange and the Frankfurt Exchange.
| Issuer: | Republic of Indonesia
|
| Amount: | $2.65 billion
|
| Issue: | Bonds
|
| Bookrunners: | BofA Securities, Inc., Credit Suisse (Singapore) Ltd., Deutsche Bank AG, London Branch (billing and delivery), HSBC Ltd. and J.P. Morgan Securities plc
|
| Co-managers: | PT BRI Danareksa Sekuritas and PT Trimegah Sekuritas Indonesia Tbk.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Legal Bureau of the Ministry of Finance, Assegaf Hamzah & Partners and Clifford Chance Pte. Ltd.
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| Counsel to underwriters: | Mayer Brown and Hiswara Bunjamin & Tandjung
|
| Trade date: | Sept. 6
|
| Settlement date: | Sept. 20
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year bonds
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| Amount: | $750 million
|
| Maturity: | Sept. 20, 2027
|
| Coupon: | 4.15%
|
| Price: | 98.889
|
| Yield: | 4.4%
|
| Spread: | Treasuries plus 94.5 bps
|
| Call features: | Par call starting three months before the maturity date
|
| Price talk: | 4.7% area
|
| Cusip: | 455780DM5
|
|
|
| 10-year bonds
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| Amount: | $1.4 billion
|
| Maturity: | Sept. 20, 2032
|
| Coupon: | 4.65%
|
| Price: | 98.82
|
| Yield: | 4.8%
|
| Spread: | Treasuries plus 144.9 bps
|
| Call features: | Par call starting three months before the maturity date
|
| Price talk: | 5.15% area
|
| Cusip: | 455780DN3
|
|
|
| 30-year bonds
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| Amount: | $500 million
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| Maturity: | Sept. 20, 2052
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| Coupon: | 5.45%
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| Price: | 98.547
|
| Yield: | 5.55%
|
| Spread: | Treasuries plus 203.1 bps
|
| Call features: | Par call starting six months before the maturity date
|
| Price talk: | 6% area
|
| Cusip: | 455780DP8
|
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