#HINESEûSECURITIESûlRMSûWEREûUSEDûTOûlNDû
FAIRûVALUE ûANDûCOMPARABLESûINCLUDEDû#HINAû
'REATû7ALLû!SSETû-ANAGEMENTSû"AA.2! û
October 2021s and Cinda Asset
-ANAGEMENTSû"AA.2! û-ARCHûS û
which were trading around G-plus 141bp
ANDû'
PLUSûBP ûRESPECTIVELY
Asia accounted for 90% of the deal and
%UROPEûTHEûRESTû"YûINVESTORûTYPE ûFUNDSûANDû
ASSETûMANAGERSûTOOKû ûBANKSû ûANDû
PRIVATEûBANKS ûINSURERSûANDûOTHERûINVESTORSû
the remainder.
Mirae Asset Daewoo is the largest brokerage
lRMûINû3OUTHû+OREA ûWITHûBUSINESSESûINû
TRADING ûWHOLESALEûANDûINVESTMENTûBANKING û
and wealth management.
It was established after Mirae Asset
Securities bought a 43% stake in Daewoo
Securities from state-run Korea
$EVELOPMENTû"ANKûINûû4HEûSALEûWASû
PARTûOFû+$"SûDIVESTMENTûDRIVE
The company will use the proceeds for
general corporate purposes and to fund its
global expansion.
BNP Paribas ûCitigroup ûDaiwa Capital Markets
Europe ûHSBC and Mirae Asset Securities (HK)
were joint bookrunners.SRI LANKA
SRI LANKA BONDS SELL OFFSRI LANKA’s offshore bonds sold off last week
after President Maithripala Sirisena on
October 26 sacked Prime Minister Ranil
Wickremesinghe and suspended
PARLIAMENT ûINûTHEûCOUNTRYSûLATESTûPOLITICALû
crisis.
Sirisena dismissed Wickremesinghe and
appointed opposition leader and former
president Mahinda Rajapaksa to the post.
The president and prime minister have
BEENûATûLOGGERHEADSûFORûMONTHS ûANDûINû
!PRILû3IRISENAûBRIEmYûDISSOLVEDûPARLIAMENT û
just hours after the sovereign completed a
US$2.5bn dual-tranche bond offering.
3RIû,ANKASû!PRILûûBONDSûDROPPEDûMOREûTHANûûPOINTSûLASTû-ONDAY ûTOûAûCASHû
PRICEûOFû ûYIELDINGû ûACCORDINGûTOû
Tradeweb. They had recovered to 91.8 by
Friday.
Its 2028 bonds dropped three points on
-ONDAYûTOû ûBEFOREûHITTINGûANûALL
TIMEû
low of 86.25 on Tuesday to imply a yield of
8.9%. The bonds had climbed back to 88.6 by
Friday.EUROPE/AFRICA
SEYCHELLES
REPUBLIC SELLS ‘BLUE BONDS’The REPUBLIC OF THE SEYCHELLES has announced
THEûlRSTûSOVEREIGNûh"LUEûBONDSv ûAIMEDûATû
protecting oceans.
4HEû53MûBONDûISSUE ûDEVELOPEDûWITHû
THEûASSISTANCEûOFûTHEû7ORLDû"ANK ûWASûPLACEDû
WITHûTHREEûINVESTORSû#ALVERTû)MPACTû#APITAL û
Nuveen and Prudential.
The bonds have a US$5m guarantee from
THEû7ORLDû"ANK ûANDûAREûALSOûSUPPORTEDûBYûAû
US$5m concessional loan from the Global
Environment Facility that will partially
cover interest payments.
The bond issue has a 10-year maturity and
AûCOUPONûOFû ûTHEûCOSTûOFûWHICHûTHEû
7ORLDû"ANKûSAIDûWASûEFFECTIVELYûREDUCEDûTOû
2.8% with the GEF support.
Proceeds will contribute to the World
"ANKSû3OUTHû7ESTû)NDIANû/CEANû&ISHERIESû
Governance and Shared Growth
PROGRAMME ûWHICHûHELPSûCOUNTRIESûINûTHEû
region to manage their marine resources
sustainably.
The government of the Seychelles will
place US$12m in an investment fund
MANAGEDûBYû$EVELOPMENTû"ANKûOFûTHEû
Seychelles and US$3m in a grants fund
managed by the Seychelles Conservation
and Climate Adaptation Trust.
Fish products make up 95% of the total
VALUEûOFûTHEûCOUNTRYSûEXPORTS ûANDûTHEû
lSHERIESûSECTORûEMPLOYSûûOFûTHEû
POPULATION ûACCORDINGûTOûTHEû7ORLDû"ANK
Standard Chartered was placement agent.
StanChart recently created a new
3USTAINABLEûlNANCEûTEAMûANDûANNOUNCEDûITû
WOULDûCEASEûlNANCINGûNEWûCOAL
lREDûPOWERû
plants.TURKEY
SOVEREIGN SETS 2019 ISSUANCE GOALTURKEY aims to raise around US$8bn in 2019
through bond issues in the internationalUS demand lifts Pertamina
INDONESIA Utility succeeds with a 30-year bond the second timePERTAMINA (Baa2/BBB–/BBB) last Wednesday
priced a US$750m 30-year bond issue at 6.65%,
successfully reviving a transaction that was
cancelled just the previous week because of an
extremely volatile trading period across global
financial markets.
Although appetite was still fragile, and a rare
but clear window attracted some competition
in Asian primary credit markets, the Indonesian
state-owned oil and gas company still managed
to draw a considerable amount of demand,
especially in the US.
US investors bought 63% of the 144A/Reg S
notes, fulfilling demand for index-eligible credits,
particularly in the long end, explained a banker
on the deal.
Final pricing came in about 20bp–30bp over
Pertamina’s own curve and its peers, giving
investors a rare chance to buy Indonesian
sovereign credit at advantageous yields.
The bonds were at 40–50 cents over reoffer in
secondary trading.
This time, Pertamina ditched a tender offer
that had accompanied its first, failed attempt
to raise new money, taking some pressure off
itself.
“A tender and new issue would not have done
full justice because the tender needed to be
kept open, and that was less feasible in volatile
markets,” said the banker. “Instead, the issuer
terminated the tender and continued to watch
the markets for a suitable opportunity for a new
issue.”The new issue now extends Pertamina’s
maturity profile beyond 2044.
Orders peaked at US$1.4bn, and settled at a
final US$1.1bn from 72 accounts.
Europe bought 26% and Asia 11%. By investor
type, funds took 77%, insurers and pensions 15%,
central banks, governments and agencies 7%, and
banks, private banks and others the remainder.
Fair value was based on Pertamina’s 6.45%
2044s, which were spotted at the time of marketing
at 6.44%–6.45%, while peer Perusahaan Listrik
Negara’s US$500m 2049s that were priced last
month were trading around 6.34%. The banker
added that the curve in the Indonesian long end
was pretty flat, which means that there was no
need to add much extra spread to extend it.
Marketing began at initial price guidance of
6.75% area.
Last month’s tender was for Pertamina’s
US$1bn 5.25% senior notes due 2021 and its
US$1.242bn 4.875% senior notes due 2022. In
return, it had offered to pay US$1,034.50 per
US$1,000 in principal amount of the 2021s, and
US$1,022.50 per US$1,000 of the 2022s.
The tender offer expired on October 25 and
was dependent on Pertamina being able to price
a new bond. However, the market backdrop was
extremely weak following drops in stock indices
in the US, and the offer was cancelled.
BNP Paribas, Deutsche Bank, HSBC, Standard
Chartered and Mandiri were joint bookrunners for
the new issue.
Frances Yoon