The Indonesian coal producer held
roadshows in July, but decided not
to launch at that time due to market
conditions. On Wednesday, it priced
8% notes at 98.792 to yield 8.3%, having
tightened from initial guidance of 8.75%
area.
Asian investors bought 92% of the 144A/
Reg S bonds, EMEA accounts took 5% and
US investors booked 3%.
Fund managers and hedge funds bought
a combined 95%, private banks booked 3%,
and banks and others took 1% each.
JP Morgan , Deutsche Bank , Citic CLSA
Securities and BOC International were joint
bookrunners, with Citic CLSA joining after
the July roadshow.
Proceeds will be used to repay Geo’s
S$100m (US$73m) bonds due January
2018, after it won consent from holders to
redeem them early.
Geo executive chairman Charles
Antonny Melati said the issue
“strategically strengthens our financial
position and improves our capital
structure to provide funding for our
future acquisitions on investment
opportunities in the region, as well as to
expand our business as we look towards
our target to become one of Indonesia’s
top 10 coal producers”.
The bonds were up around 1.5 points in
early trading on Thursday.
› NBFC ISSUERS TAP RUPIAH NOTES
Indonesian non-banking finance companies
are tapping rupiah bonds on a softening
of yields after two rate cuts in the last two
months.
Consumer finance company ASTRA SEDAYA
FINANCE aims to raise Rp1.8trn (US$133m)
from the sale of rupiah bonds in three
tranches, according to an offer document.
BUSSAN AUTO FINANCE intends to raise
Rp500bn at tenors of one and three years,
according to a source close the plan.
“Domestic issuers, which already have
shelf registration programmes, will raise
rupiah bonds after two rate cuts this year,”
said a DCM banker.
Indonesian bonds have rallied nearly
40bp-50bp across the curve during the last
month after back-to-back rate cuts, which
had surprised markets, according to a
Nomura note dated September 27.
The 10-year government bond yield is at
6.51%, the lowest in four years.
Bank Indonesia cut the main policy
rate by 25bp to 4.25% on September 22 to
spur growth as inflation remains under
control. The central bank has cut rates
two times this year and six times last
year.
Astra Sedaya Finance has put out
indicative guidance ranges of 5.9%-6.4%
for a tenor of 370 days, 7.0%-7.5% for three
years and 7.25%-7.75% for five years.
Bookbuilding for the offering will begin
on Friday and will close on October 11.
BCA Sekuritas, CIMB Securities, DBS Vickers
Securities, Indo Premier Securities, Mandiri
Sekuritas and Standard Chartered Sekuritas
Indonesia are lead arrangers on the issue,
which Fitch rates AAA (stable).› SMF PRICES RUPIAH DOUBLESARANA MULTIGRIYA FINANSIAL has priced dual-
tranche rupiah bonds of one year and three
years at 6.25% and 7.25% to raise Rp327bn
and Rp623bn, respectively, according to a
source close to the process.
Indo Premier, Danareksa, DBS Vickers and
Trimegah Sekuritas are lead arrangers for the
Rp1trn issue from the Indonesian mortgage
securitisation company.
Pefindo has assigned a AAA rating to the
bonds.SYNDICATED LOANS
› BFI FINANCE LIFTS LOAN SIZEBFI FINANCE INDONESIA has increased its three-
year loan to US$125m from a targeted size
of US$100m ahead of signing soon.
Mitsubishi UFJ Financial Group , Standard
Chartered and Sumitomo Mitsui Banking Corp
a re the mandated lead arrangers and
bookrunners on the financing.
The loan, which has been pre-funded
and partially drawn, pays a top-level all-in
pricing of 160bp, based on an interest
margin of 140bp over Libor and an average
remaining life of 1.625 years.
BFI Finance, a provider of leasing
and consumer finance services, was
established in 1982. It is a 42.8%-
owned unit of the Trinugraha Capital
SA consortium, which includes global
private-equity firms TPG and Northstar
Group.
For full allocations, see http://www.ifrasia.com.EQUITY CAPITAL MARKETS
› GMF AERO ASIA CUTS IPO SIZEGARUDA MAINTENANCE FACILITY AERO ASIA has cut
the size of its IPO by 60% after receiving a
lukewarm response from investors.
GMF Aero Asia, a subsidiary of state-
owned Garuda Indonesia, raised Rp1.27trn
(US$95m) versus an original target of up to
Rp3.2trn, two persons with knowledge of
the transaction said.
The shares were priced at Rp400 pershare, off a Rp390–Rp510 range. The final
price implied a 2018 P/E of 14.
The company decided to sell only 10% of
the capital as opposed to the original 20%
as, under current rules, the majority of the
shares had to be allotted to local investors,
said one of the persons.
“Although the bids from foreigners were
at a higher level, we had to allocate the
deal based on the bids received from local
investors.”
Under the original terms, the IPO
comprised a base deal of 6.35bn shares,
which could be increased to 10.9bn.
The shares will start trading on the
Indonesia Stock Exchange on October 10.
BNI , Bahana , Danareksa and Mandiri were
the bookrunners. CIMB Sekuritas was the
international selling agent.
GMF Aero Asia provides engineering and
maintenance services for Garuda Indonesia
and other airlines.JAPAN
DEBT CAPITAL MARKETS
› FOUR-PIECE PRINT FOR NISSAN UNITNISSAN MOTOR ACCEPTANCE on Monday priced
US$2bn of senior unsecured bonds in four
tranches, with four active bookrunners.
It offered US$550m of three-year
fixed-rate notes at Treasuries plus 62bp,
versus initial price thoughts of 80bp area,
US$300m of three-year floating-rate notes
at three-month Libor plus 39bp, US$700m
of five-year fixed-rate notes at Treasuries
plus 77bp, versus IPTs of 95bp area, and
US$450m of five-year floaters at Libor plus
69bp.
The bonds are expected to be rated A2/A
(Moody’s/S&P).
JP Morgan , Bank of America Merrill Lynch ,
Barclays and TD Securities were active
bookrunners for the 144A/Reg S offering.
NMA, the automotive financial services
arm of Nissan North America, will use the
proceeds for general corporate purposes.SYNDICATED LOANS
› BAIN GROUP TO BORROW FOR BUYOUTA consortium, led by private-equity firm
Bain Capital, will raise loans of ¥600bn
(US$5.4bn) to fund the ¥2trn acquisition of
Toshiba’s memory-chip business.
The Japanese conglomerate said last
Thursday that it had signed to sell the unit,