Rs3.2bn in the financial year to March 31
2017, up from Rs2.9bn in 2016. Its net non-
performing loans were 1.2% of total loans in
2017 versus 0.2% in 2016.
JM Financial , Kotak , Morgan Stanley , Motilal
Oswal and Nomura are bookrunners.
INDONESIA
DEBT CAPITAL MARKETS
› FIF READIES US DOLLAR BOND
FEDERAL INTERNATIONAL FINANCE , rated Baa2/
BBB– (Moody’s/Fitch), is planning a debut
US dollar bond offering with HSBC as global
coordinator, as well as joint bookrunner
with DBS Bank , Mizuho Securities , MUFG and
OCBC Bank.
A series of fixed income meetings were
held in Singapore, Hong Kong and London
from last Thursday. An offering of Reg S
senior unsecured notes will follow, pending
market conditions.
The Indonesian motorcycle leasing
company, a unit of conglomerate Astra
International, recently established a
US$1bn Euro MTN programme, rated Baa2/
BBB– (Moody’s/Fitch).
FIF is a frequent issuer in the domestic
bond market. Jardine Matheson Holdings is
the ultimate parent of FIF.
› PLN EYES DOLLARS, KOMODO BONDSState-owned Indonesian power utility
PERUSAHAAN LISTRIK NEGARA , rated Baa2/BB/BBB,
has hired banks for a proposed offering
of US dollar-denominated and/or global
rupiah 144A/Reg S notes, subject to market
conditions.
Citigroup , HSBC , Mandiri Securities and
Standard Chartered Bank are joint lead
managers and joint bookrunners.
PLN started to meet investors in Asia,
Europe and the US on April 26.
State-owned toll-road operator Jasa Marga
and construction company Wijaya Karya
were the first companies to issue offshore
rupiah, or Komodo, bonds in December and
January, respectively.
PLN has also announced an “any and
all” tender offer for some of its existing US
dollar bond lines.
It has offered to pay US$1,066.75 per
US$1,000 in face value of its US$750m 8%
bonds due August 2019, US$1,074.00 per
US$1,000 for its US$1.25bn 7.75% notes
due January 2020, and US$1,295.00 per
US$1,000 for its US$500m 7.875% notes due
June 2037.
The same four banks are acting as dealer
managers for the tender offer, which
expires on May 4.› GARUDA MULLS OFFSHORE BONDSAirline GARUDA INDONESIA said it planned to
issue offshore bonds up to a maximum sizeof US$750m and a tenor of up to five years.
Proceeds from the Reg S issue will be
used to repay debt, among other purposes.
ANZ , MUFG , Deutsche Bank and Standard
Chartered are joint lead managers for
the proposed transaction, according to a
Bahasa-language filing to the Indonesia
Stock Exchange.› BSD EYES RUPIAH DUAL-TRANCHERProperty developer BUMI SERPONG DAMAI aims
to raise Rp2.35trn (US$168m) from a public
issue of rupiah bonds, according to the
offer document.
It has given indicative prices in the
range of 7.5%–8.0% for a three-year tranche
and 8.5%–9.0% for a five-year portion. The
coupon will be paid quarterly.
The notes are rated AA– by Pefindo.
Mandiri Sekuritas is the lead arranger for
the issue.
Separately, Bumi Serpong Damai is also
marketing US dollar three-year non-call
two bonds at initial price guidance of 7.25%
area.
Global Prime Capital will issue the Reg S
benchmark notes and Bumi Serpong Damai
will guarantee them.› SMF PLANS DUAL-TRANCHE OFFERINGSARANA MULTIGRIYA FINANSIAL is planning
to raise Rp1.153trn from two tranches
of rupiah bonds, according to an offer
document.Bumi Serpong drags down its own curve
Bonds High new-issue yield prompts sell-off in existing notesIndonesian property developer BUMI SERPONG
DAMAI priced US$250m of three-year non-call
two bonds last Monday at 7.25%, prompting
a sell-off of its existing paper.
Whereas the outstanding US$270m notes
pay 5.5% and mature in 2023, the new bonds
pay a higher coupon and mature earlier, in- Holders of the 2023s thus dumped the
older bonds, with yields soaring to 7.5% at
last Monday’s close from 6.8% on April 20,
according to Thomson Reuters data.
Final statistics were not available, but
books were said to have reached US$500m
at final price guidance. Pricing did not move
from the initial guidance of 7.25% area.
The issuer’s initial plan was to sell a
US$300m seven-year non-call four bond,
but it had to compromise after a lukewarm
reception during a March roadshow and in
light of weak market conditions.
Despite the poor backdrop, a banker on
the trade said he was encouraged to see
decent real money appetite and high-quality
private bank participation.
The bonds opened at par and were an
eighth of a point higher the following day.
Global Prime Capital will issue the Reg S
benchmark notes and Bumi Serpong Damai
will guarantee them. The notes are expected
to be rated Ba3/BB– (Moody’s/Fitch).
Proceeds will be used to repay an onshore
loan, among other purposes.
Despite weakness in the Indonesian
property market since the second half of
2015, Bumi Serpong has generated strong
sales through new project launches and sales
of commercial plots of land, according to a
Moody’s note.
Moody’s raised Bumi Serpong’s outlook
to positive from stable last month, saying anincrease in its recurring income and strong
financial metrics could support a credit
upgrade.
Citigroup , UBS , BNP Paribas and Credit
Suisse were joint bookrunners.
Last May, the developer priced a US$70m
tap of its 5.50% 2023 US dollar senior
unsecured bonds at 101.625, lifting their
outstanding size to US$270m.
BSD is the largest developer listed on the
Indonesia Stock exchange in terms of market
capitalisation. As at December 31, Sinarmas
Land held a 58% stake in the company.
BSD’s ownership by the Widjaja family’s
Sinarmas Group had deterred some
investors on previous deals. Bondholders
still remember the heavy losses handed to
offshore creditors after the group’s flagship,
Asia Pulp and Paper, defaulted in 2001.
FRANCES YOON