By Reshmi Basu
New York, Oct. 5 - The Republic of Indonesia sold $1.5 billion of sovereign bonds (B2/B+/BB-) in two tranches on Wednesday, according to a market source.
The country sold $900 million of bonds due January 2016 at 99.139 with a 7½% coupon to yield 7 5/8%. Indonesia also sold $600 million of bonds due October 2035 at 98.666 with an 8½% coupon to yield 8 5/8%.
Both tranches priced at the tight end of price guidance. Guidance for the 2016 bonds was set at 7 5/8% to 7¾% while the 2035 bonds were talked at 8 5/8% to 8¾%.
Citigroup, Credit Suisse First Boston and Merrill Lynch ran the Rule 144A/Regulation S transaction.
Proceeds will be used to help plug the budget deficit.
| Issuer: | Republic of Indonesia
|
| Issue: | Two-tranches of bonds due 2016 and 2035
|
| Total amount: | $1.5 billion
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 12
|
| Bookrunners: | Citigroup, Credit Suisse First Boston, Merrill Lynch
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
|
|
| 2016 tranche
|
| Amount: | $900 million
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 7½%
|
| Issue price: | 99.139
|
| Yield: | 7 5/8%
|
| Spread: | 329 basis points more than Treasuries
|
| Price guidance: | 7 5/8% to 7¾%
|
|
|
| 2035 tranche
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| Amount: | $600 million
|
| Maturity: | Oct. 12, 2035
|
| Coupon: | 8½%
|
| Issue price: | 98.666
|
| Yield: | 8 5/8%
|
| Spread: | 406 basis points more than Treasuries
|
| Price guidance: | 8 5/8% to 8¾%
|
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