INDONESIA
DEBT CAPITAL MARKETS
› SMF WORKS ON RP5TRN ISSUE
SARANA MULTI INFRASTRUKTUR aims to raise up
to Rp5trn (US$370m) from a public issue of
fixed-rate and floating-rate notes, according
to a source close to the plans.
The Indonesian infrastructure financing
company has put out indicative price
guidance ranges of 5.75%–6.5% for one-year,
6.5%–7.5% for three-year and 6.75%–7.75%
for five-year pieces.
There is also an optional floater at
indicative price guidance of 30bp to 120bp
over three-month Jibor (Jakarta Interbank
Offered Rate).
The floater would be the first public issue
from an Indonesian company since 2003,
said the source.
In June, SMF said it had approval from
the Financial Services Authority to raise up
to Rp7trn from rupiah bonds this year.
“Several Indonesian companies have
been raising bonds in the past few weeks as
corporate bond yields have bottomed out,”
said a DCM banker.
The 10-year government bond yield
spiked 30bp to 6.567% since September 25
after touching over four-year low of 6.269%.
Pefindo has assigned a AAA rating to SMF
bonds.
› PLN PRICES FOUR-TRANCHE ISSUE
State-owned Indonesian power utility
PERUSAHAAN LISTRIK NEGARA has priced rupiah
and sukuk bonds to raise a total of
Rp3.3trn, according to a source close to the
development.
It priced a five-year tranche at 7.2%, a
seven-year at 7.5%, a 10-year at 8.2% and a
15-year at 8.7%.
PLN has yet to announce officially the
final prices and give a breakdown of the
rupiah and sukuk portions.
It has mandated Bahana Sekuritas,
Danareksa Sekuritas, Indo Premier Securities and
Mandiri Sekuritas. The proceeds of the issue
will be used to invest in a transmission
network.› INDOSAT EYES RP3TRN OFFERINGINDOSAT has put out indicative price
guidance ranges to raise Rp3trn from five-
part rupiah bonds, including Rp500bn of
sukuk spread across all tranches, according
to a source close to the process.
The Indonesian telecommunications
company has given guidance for both rupiah
and sukuk portions at 5.75%–6.75% for one-
year, 6.75%–7.75% for three-year, 7.10%–8.10%
for five-year, 7.65%–8.40% for seven-year and
8.25%–9.00% for 10-year pieces.
Indosat has named BCA Sekuritas, CIMB,
DBS, IndoPremier and Mandiri Sekuritas joint
lead underwriters.
The bonds have a AAA local rating from
Pefindo.› PUPUK SEEKS RP2.9TRN FROM PUBLICPUPUK INDONESIA is targeting Rp3.9trn from
a two-part public issue of rupiah bonds,
according to an offer document.
The state-controlled fertiliser producer
has given indicative price guidance ranges
of 7.00%–7.75% for a three-year tranche and
7.25%–8.00% for a five-year piece.
It has appointed Bahana Sekuritas, BCA
Sekuritas, BNI Sekuritas, Danareksa Sekuritas
and Mandiri Sekuritas lead arrangers for the
offering.
Fitch has assigned a AAA rating to the
bonds. The bookbuilding commenced on
October 3 and will close on October 17. The
tentative pay-in date is November 8.SYNDICATED LOANS
› ASTRA AGRO SIGNS US$250M CLUBPalm oil company ASTRA AGRO LESTARI has
signed with nine banks a US$250m five-year
club loan for general corporate purposes.ANZ, Bank of China, Bank Mandiri, DBS Bank,
OCBC Bank, Mitsubishi UFJ Financial Group,
Mizuho Bank, SMBC and United Overseas Bank
were the lenders on the bullet loan, which
was self-arranged and signed at the end of
September.
The borrower last raised a club loan
in July 2009, when five banks joined a
US$150m three-year financing. MUFG,
Natixis, OCBC, SMBC and Standard
Chartered were the lenders on that facility,
comprising a US$100m term loan and a
US$50m revolving credit. The all-in pricing
was said to be about 400bp.
Listed on the Jakarta Stock Exchange,
Astra Agro is a subsidiary of Indonesian
conglomerate Astra International.JAPAN
DEBT CAPITAL MARKETS
› MFG PRICES DEBUT EURO GREENMIZUHO FINANCIAL GROUP priced €500m
(US$592m) of seven-year senior bonds,
which represented its first euro trade and
debut Green offering.
The bonds were launched at 44bp over
swaps through Mizuho, Bank of America Merrill
Lynch, Barclays, BNP Paribas and Natixis.
Marketing started at 55bp to 60bp, with
books over €1.8bn as guidance was set.
Initial ratings are A1 from Moody’s and
A– from S&P.
It is the first euro trade from the
Japanese bank. Mizuho International
has euro floating-rate notes outstanding,
but, while it benefits from a keepwell
agreement from Mizuho, it is a different
credit.
Mizuho’s is the second Green euro print
for a Japanese bank in as many weeks,
following Sumitomo Mitsui Financial
Group’s €500m of seven-year Green senior
bonds earlier this month.
The euro market has becomeS034334/5-16CONTRIBUTE CONTENT. MULTIPLY YOUR REACH.
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