IFR Asia - 15.09.2018

COUNTRY REPORT INDONESIA

INDONESIA

DEBT CAPITAL MARKETS

› XL AXIATA RELEASES GUIDANCE

XL AXIATA is planning to raise Rp2trn
(US$135m) from a five-part bond offering,
including a Rp1trn sukuk portion,
according to an offer document.
The Indonesian mobile
telecommunications services operator has
put out indicative price ranges of 8.0%–8.5%
for 370 days, 8.75%–9.50% for three years,
9.25%–10.25% for five years, 9.85%–10.50% for
seven years and 10.00%–10.65% for 10 years.
It has fixed the ranges at the same levels
for the sukuk tranches. The interest on the
bonds will be paid quarterly.
CIMB, DBS Vickers, Indo Premier, Mandiri and
Maybank Kim Eng Sekuritas are lead arrangers
for the bond offering.
The books opened on September 13 and
will close on September 27.
The funds raised will be used for
network-related capital expenditure.
Fitch Ratings Indonesia has assigned a
AAA rating to the notes.

› JLB FIXES YIELD FOR DUAL-TRANCHER

JAKARTA LINGKAR BARATSATU has fixed the yield

for a two-part bond offering of Rp1.3trn,

according to BCA Sekuritas.

The operator of toll roads in west Jakarta

has fixed the yields at 9.75% for a three-year

tranche of Rp875bn and 10.65% for a five-

year portion of Rp425bn.

Around 80% of the funds will be used for

refinancing a bank loan and the rest will be

used to meet working capital requirements.

The notes are rated A+ by Pefindo. The

interest on the bonds will be paid quarterly.

BCA Sekuritas and Mandiri Sekuritas are the

lead arrangers for the issue.

› MEDCO SETS COUPONS

MEDCO ENERGI INTERNASIONAL has set the

coupons for a domestic dual-tranche bond

offering of Rp1.25trn, according to the offer

document.

The Indonesian oil and gas explorer and

producer has fixed the coupons at 10% for a

three-year tranche of Rp1.15trn and 10.75%

for a five-year Rp41.25bn portion. The

remaining Rp57.85bn piece of the offering

will be sold on a best-effort basis.

The interest on the bonds will be paid

quarterly. Pefindo rates the bonds A+.

The notes will be alloted on September

24 and 25 and the listing will take place on

September 28.

Danareksa, Mandiri, Samuel and Trimegah

Sekuritas are the lead arrangers.

Proceeds will be used to repay debt.

Medco Energi has debt of about US$348m

maturing this year, according to Nomura

Credit Research.

In March, it raised Rp500bn from dual-

tranche bonds. In January, it printed

US$500m of seven-year non-call four bonds

with a 6.75% coupon, priced to yield 6.9%.

› WASKITA KARYA EYES RP2TRN BONDS

WASKITA KARYA is planning to raise Rp2trn

from a dual-tranche bond offering,

according to the offer document.

It has put out indicative yield ranges of

8.5%–9.25% for a three-year tranche and

9%–10% for a five-year piece.

The books opened on August 20 and

were due to close on September 10.

In February, Waskita Karya raised

Rp3.44trn from a dual-tranche bond

offering.

Fitch Ratings has assigned a A– rating to

the notes.

Mandiri Securities is the lead arranger for

the issue.

SYNDICATED LOANS

› WASKITA KARYA BACK WITH LOAN

Indonesian state-owned developer WASKITA

KARYA has returned to the market with a

Rp3trn (US$200m) five-year facility, slightly

over a year since it closed its debut Rp5trn

facility.

Barito eyes US$2bn Suralaya power PF

„ Loans Indonesian conglomerate expands into energy

Jakarta-listed conglomerate BARITO PACIFIC

and Indonesia Power, a subsidiary of state-

owned Perusahaan Listrik Negara, are in

discussions with banks for a US$2bn loan to

fund the construction of two 1,000 megawatt

coal-fired plants in Indonesia.

The financing will comprise commercial

and export credit agency-backed tranches.

The commercial tranche is expected to carry

a 15-year tenor.

DBS Bank is the financial adviser for the

project, which is estimated to cost around

US$3bn and will involve the construction of

two ultra supercritical plants at Suralaya in

Banten province.

The plants, known as Jawa 9 & 10, will be

located close to the existing Suralaya coal-fired

power plants numbered 1–8. The new plants

are expected to become operational by 2022.

PLN will be the offtaker for the electricity

produced and has signed a 25-year power

purchase agreement with Indo Raya Tenaga,

the project company.

IRT is a 49:51 joint venture between Barito

Pacific and Indonesia Power.

Although Barito Pacific has not borrowed

in its own name in the syndicated loan

markets, lenders are familiar with Chandra

Asri Petrochemical, the largest petrochemical

plant in Indonesia. Barito Pacific owns a

46.3% stake in Chandra Asri, which has not

tapped the loan markets since 2012.

Barito Pacific will also be able to tap into

the banking relationships it has access to

following its acquisition of a 66.67% stake

in Star Energy Group Holdings in early June

for US$755m. Barito Pacific raised Rp8.9trn

(US$599m) from a rights issue to fund the

acquisition.

Star Energy is a well-known name in

international capital markets, having

completed a US$660m dual-tranche loan

in May last year to fund its purchase of the

Salak and Darajat geothermal fields in West

Java from US energy giant Chevron.

Ten banks joined original mandated lead

arrangers and bookrunners Credit Suisse,

DBS Bank and Maybank Kim Eng Securities

on the deal, which paid a top-level all-in

pricing of 410.76bp based on an interest

margin of 360bp over Libor and a remaining

average life of 3.94 years.

Star Energy was part of an acquiring

consortium that included Philippine

conglomerate Ayala and Electricity

Generating Co of Thailand.

Business tycoon Prajogo Pangestu is the

controlling shareholder and founder of Barito

Pacific, which started life in 1979 as Bumi

Raya Pura Mas Kalimantan, a forestry and

timber company. It then listed on the stock

exchange in 1993 as Barito Pacific Timber.

PRAKASH CHAKRAVARTI