International Financing Review Asia February 10 2018 27COUNTRY REPORT INDONESIAPegadaian has appointed Bahana, BNI,
Danareksa and Mandiri Sekuritas as lead
arrangers.
The funds will be used for refinancing of
bank loans.
Pefindo has assigned a AAA rating to the
secured bonds.› EXIMBANK SELLS THREE-TRANCHERINDONESIA EXIMBANK has sold Rp2.46trn of
three-tranche rupiah bonds, according to a
source close to the transaction.
The bank raised Rp610bn from a three-year
at 6.35%, Rp1.65trn from a five-year at 6.7%
and Rp206bn from a seven-year at 6.9%.
Danareksa, DBS Vickers, CIMB and Indo
Premier were lead arrangers on the issue,
which has a AAA Pefindo rating.
Indonesia Eximbank has yet to announce
the issue officially.› BRI RAISES TWO-TRANCHE FUNDSBANK RAKYAT INDONESIA has raised Rp2.4trn
from dual-tranche bonds, according to a
source close to the sale.
The Indonesian state lender issued a
Rp1.77trn five-year portion at 6.65% and a
Rp677bn seven-year piece at 6.9%.
Bahana Securities, BCA Sekuritas, Danareksa
Sekuritas, DBS Vickers Securities and Indo
Premier Securities were lead arrangers.
Pefindo rates the bonds AAA.
BRI plans to issue Rp12trn–Rp15trn
of bonds under a three-year programme
starting in the second half of 2018, with a
Rp5trn target for this year, Reuters reported
last month, citing CFO Haru Koesmahargyo.
BRI also plans to issue Rp5trn of bonds
this year off an existing programme, he
said.› ADIRA TARGETS RP1.5TRN VIA BONDSADIRA FINANCE aims to raise Rp1.5trn from
five-tranche bonds with rupiah and sukuk
portions, according to an offer document.
The Indonesian consumer finance firm
has put out indicative price ranges of
5.85%–6.25% for rupiah bonds of 370 days,
6.25%–6.75% for those of two years, 6.95%–
7.45% for those of three years, 7.00%–7.50%
for those of four years and 7.05%–7.55% for
those seven years to raise Rp1.3trn. The
remainder will come from Islamic paper
with similar maturities and prices.
Bookbuilding began on February 8 and
will close on February 23.
Mandiri, DBS Vickers, RHB, Indo Premier
Sekuritas and Trimegah Sekuritas are lead
arrangers for the issue, rated AAA (Pefindo).
The funds will be used for consumer
financing activities.SYNDICATED LOANS
› TIPHONE LAUNCHES US$186M LOANTIPHONE MOBILE INDONESIA has launched a
US$186m-equivalent three-year loan
through mandated lead arrangers and
bookrunners Bank Central Asia, Bank CIMB
Niaga and Standard Chartered.
The loan is split into tranches of
Rp1.25trn (US$92m) and US$94m.
The interest margin is 300bp over Jibor
for the onshore portion and 200bp over
Libor for the offshore piece.
Based on a 2.75-year remaining life and
an early-bird fee of 5bp, lenders can join
the offshore tranche for a top-level all-in
pricing of 218.2bp and the lead arranger
title, through a 45bp management fee, for
US$20m or more, or an all-in pricing of
212.7bp and the arranger title, via a 30bp
fee, for US$10m–$19m.
The deadline to commit for the early-bird
fee is February 21.Funds are for refinancing purposes.
The borrower last tapped the loan
market with a US$184m-equivalent three-
year revolving credit facility in December- BCA, CIMB, HSBC and StanChart
were the MLABs on that loan, comprising
a Rp1.875trn tranche and a Rp625bn-
equivalent tranche in US dollars. Based
on a 2.75-year remaining life, the all-in
pricing was 241.8bp (onshore) and 221.8bp
(offshore) via margins of 220bp and 200bp,
respectively.
The Jakarta-listed borrower sells mobile
phones, SIM cards, accessories, spare parts
and offers phone repair services.
› INDORENT WORKS ON US$100M LOANCar rental company CSM CORPORATAMA,
also known as Indorent, is about to
launch a US$100m financing into general
syndication with six banks at the top.
ANZ, CIMB, CTBC Bank, DBS, Standard
Chartered and SMBC are mandatedPoor response to Vedanta refi
Loans Five-year facility of US$575m attracts just two banks in general syndicationA five-year amortising loan of US$575m for
London-listed VEDANTA RESOURCES met with a
poor response before closing in December
after just two banks joined in general
syndication.
Federal Bank and Punjab National Bank
were the lenders, with a combined US$80m,
in general syndication, meaning mandated
lead arrangers, bookrunners and underwriters
Barclays, Credit Suisse, DBS Bank, First Abu
Dhabi Bank and Standard Chartered took
US$99m each.
The outcome was not surprising due to
the timing of the loan, which was signed in
December after having been launched into
syndication in mid-September. It followed a
US$651m four-tranche loan for Cairn India
Holdings, which merged with Vedanta last
year.
Cairn India’s loan refinanced all debt
at Vedanta wholly owned unit Twin Star
Holdings, also the borrower on the latest
borrowing.
The US$651m four-tranche loan for Cairn
India comprises a US$155.125m three-year
facility A, a US$93m five-year facility B, a
US$309.875m five-year facility C and a
US$93m five-year facility D. Only facilities
A and C were syndicated to foreign lenders,
while Indian banks took up tranches B and D.
Seven banks joined tranches A and C, while
one Indian lender came forward for tranchesB and D. Axis, Barclays, Citigroup, Credit
Suisse, First Abu Dhabi Bank, ICICI Bank and
StanChart were the MLABs on the entire
financing.
Interestingly, Barclays and Credit Suisse
ended up with zero final holds, a rarity in
Asia syndicated loans. Axis Bank and ICICI
underwrote tranches B and D.
Banks joining both facilities A and C as
MLAs on a pro-rata basis were offered a
blended top-level all-in of 233.4bp. The
blended interest margin is 205bp and the
blended remaining average life is 3.17 years.
On the other hand, Vedanta’s US$575m
loan did not attract lenders, despite offering
a richer top-level all-in of 345.46bp based on
a margin of 310bp over Libor and a remaining
average life of 4.23 years.
Vedanta’s loan complemented US$1bn of
seven-year non-call four senior unsecured
bonds it completed in early August. The
bonds were priced at 6.125%, inside initial
guidance of 6.375%. The five leads on the
loan, along with JP Morgan, were joint global
coordinators, joint lead managers and joint
bookrunners on the bonds.
Proceeds from the loan and the bonds were
used to refinance debt, including a tender
offer Vedanta announced in late July for two
outstanding bonds – US$774.8m of 6.0%
2019s and US$900m of 8.25% 2021s.
PRAKASH CHAKRAVARTI, CHIEN MI WONG1028_07 Country02.indd 27 09/02/2018 22:00:43