COUNTRY REPORT INDONESIAqualified institutional placement or an
institutional placement programme.
In a QIP, shares are sold to institutions
via an overnight accelerated bookbuilding
process after the close of the market,
whereas, in an IPP, shares are sold to
institutions on the local stock exchanges.
Only primary shares can be sold in a QIP
whereas both primary and secondary
shares can go in an IPP.
Last year, the Securities and Exchange
Board of India allowed companies to use
QIP to increase the minimum public
shareholding to 25%.
If MRPL decides to sell shares through
a QIP, it will be the first state-owned
company to do so after the rule change.
At current market prices, the share sale
will bring a total of Rs27bn.
Oil and Natural Gas Corp owns a 71.63%
stake in the company, while Hindustan
Petroleum Corp holds 16.96%. Both
companies are state-owned entities.
MRPL refines and manufactures
petroleum products.
› BANDHAN IPO SETS RECORD
BANDHAN BANK’s IPO of Rs45bn was 14.63
times subscribed when books closed last
Monday, according to stock exchange
data.
India’s largest bank IPO on record is set
to be priced at the top of the Rs370–Rs375
range.
The institutional tranche was 38.67
times covered, while the high-net-worth
individual piece was 13.89 times covered
and the retail portion 1.2 times. Criticism
that the IPO was priced expensively led to
the subdued retail interest.
Up to 119.3m shares will be sold in the
IPO. Of these, 97.7m are primary and 21.6m
secondary.
Axis, Goldman Sachs, JM Financial, JP Morgan
and Kotak were bookrunners.
› RELIANCE GENERAL DELAYS IPO
RELIANCE GENERAL INSURANCE has pushed back
the launch of its planned IPO to the second
half from the first quarter after failing to
obtain the valuation it wanted, people with
knowledge of the transaction have said.
The company was earlier targeting a
launch before March 31 for the expected
Rs12bn–Rs15bn float.
Reliance General has been looking at a
valuation of Rs70bn, whereas investors are
more comfortable with Rs50bn–Rs55bn.
The overall fall in the market is
prompting investors to seek lower prices
for new issues. The benchmark S&P BSE
Sensex is down 4.5% year to date after
rising 28% in 2017.
In the draft prospectus, Reliance General
said 16.76m primary shares and 50.3m
secondary shares would be sold in the IPO.
Parent Reliance Capital is the vendor of the
secondary shares.
The shares are to be listed on the BSE
and National Stock Exchange.
Credit Suisse, Motilal Oswal, Edelweiss and
UBS are the joint global coordinators and
bookrunners with Haitong Securities and IDBI
Capital Markets.
Reliance General posted a net profit of
Rs1.28bn for the financial year to March 31
2017, up from Rs1bn in FY2016.
The company is the latest Indian
insurer to plan an IPO after SBI Life
Insurance, General Insurance Corporation
of India, The New India Assurance, HDFC
Standard Life and ICICI Lombard listed
last year.INDONESIA
DEBT CAPITAL MARKETS
› OTO MULTIARTHA TARGETS RP1.5TRNOTO MULTIARTHA plans to raise Rp1.5trn
(US$109m) from triple-tranche rupiah
bonds, via lead arrangers BCA Sekuritas,
Mandiri Sekuritas, IndoPremier and Nikko
Sekuritas Indonesia, according to an offer
document.
The Indonesian car finance firm has put
out indicative price ranges of 5.75%–6.4%
for a 370-day tranche, 6.9%–7.8% for a three-
year piece, and 7.1%–8.1% for a five-year
portion.
Bookbuilding began on March 15 and
will close on March 29.
Pefindo has assigned the notes its AA+
rating.SYNDICATED LOANS
› TELKOM SCRAPS EURO DEBUTTELEKOMUNIKASI INDONESIA (Telkom) has
cancelled plans for a €1bn (US$1.2bn) loan
as it has no more need for acquisition
financing. The loan would have been its
first in the European currency.
Telkom was in the running to buy
London-based fibre and cloud networks
business Interoute, but lost out to US
network company GTT Communications,
which said on February 26 it would buy its
European peer for €1.9bn.
Seven banks are financing GTT’s
Interoute acquisition.Telkom had also sent a request for
proposals for a Rp7trn (US$490m) multi-
tranche new-money loan in December.
That financing is likely to close as a series
of bilateral facilities with a handful of
Indonesian and international banks. It was
to comprise tenors ranging from one to
seven years.
Meanwhile, two units of Telkom are
seeking separate loans totalling up to
US$1bn-equivalent.
TELEKOMUNIKASI SELULAR (Telkomsel),
Telkom’s mobile phone unit, has sent
out a RFP for a multi-tranche financing
up to US$900m-equivalent, while
TELEKOMUNIKASI INDONESIA INTERNATIONAL (Telin)
is reaching out to banks for a US$100m
debut loan.
Telkomsel’s borrowing comprises a
Rp11trn tranche and a US$20m piece, and
is expected to have tenors ranging from
one to five years, while Telin is eyeing a
loan of up to seven years.
Funds raised for both borrowers will be
used for general corporate purposes.
Telin, an Indonesian carrier services and
investment company, is a wholly owned
subsidiary of Telkom.› INDORENT LOAN DRAWS HANDFULCar rental company CSM CORPORATAMA,
also known as Indorent, has received
commitments from a handful of banks
for its US$100m financing in general
syndication. Several more lenders are still
processing approvals.
ANZ, CIMB, CTBC Bank, DBS, Standard
Chartered and SMBC are the mandated lead
arrangers and bookrunners on the facility,
which is slated to close around the end of
March.
The borrowing, which comes with an
unspecified greenshoe option, pays a top-
level all-in pricing of 211.43bp (onshore)
and 191.43bp (offshore), based on interest
margins of 190bp (onshore) and 170bp
(offshore) over Libor and a 2.8-year average
life.
Funds will be used to refinance a
US$100m three-year loan completed in
January 2016. CTBC, DBS, StanChart and
SMBC provided the loan, which attracted
six banks in general syndication. That loan
offered a top-level all-in pricing of 305.68bp
or 275.68bp for the offshore and onshore
tranches, based on margins of 280bp and
250bp over Libor, respectively. The average
life is 2.29 years.
Indorent, an affiliate of Indomobil
Finance Indonesia, provides vehicle and
heavy-duty equipment financing services.
Indorent and Indomobil Finance are units
of Indomobil Multi Jasa, which is under the
control of conglomerate Salim Group.