Pertamina prices $3.25b senior notes due 2023 and 2043
Wednesday, May 15 2013 - 01:32 PM WIB
The offering will constitute a drawdown off Pertamina?s $5 billion Global Medium Term Note Program established on May 3, 2013 and follows a series of fixed income investor meetings in Asia, Europe and the U.S. on May 8 to 10, 2013. Notes amounting to $1.625 billion with 4.30% coupon rate due May 20, 2023 were priced at par to yield 4.30% p.a. An equal amount of 5.625% coupon notes due May 20, 2043 were priced at par to yield 5.625% p.a.
The offering was well received by investors globally, Pertamina said in a statement. Order worth $14.4 billion was received from over 667 investors across both tranches of the offering, equivalent to oversubscription in excess of 4.4 times. In terms of geographic distribution, the 2023 Notes were allocated 29% to Asia, 39% to Europe and 32% to the U.S. 76% of the 2023 Notes were allocated to asset managers and funds, 9% to banks, 7% to insurance, 4% to central banks, and other quasi-sovereign investors and 4% to private banks.
The 2043 Notes were allocated 38% to Asia, 22% to Europe and 40% to the U.S. 68% of the 2043 Notes were allocated to asset managers and funds, 17% to banks, 8% to insurance, 3% to central bank and other quasi-sovereign investors and 4% to private banks.
?With this transaction, Pertamina completed the largest international bond offering to-date by an Indonesian issuer while establishing record-low coupons across both 10- and 30-year maturities by an Indonesian corporate,? Andri Hidayat, Pertamina?s Finance Director, said
?The offering capitalized on current markets and investor demand for the Pertamina credit to meet our objectives of financing capital expenditure and general corporate purposes at attractive cost. The offering is testament to international investor sponsorship for Pertamina and recognition of Pertamina?s prospects in the years ahead,? he added.
Pertamina last tapped the international capital markets in May 2012 with a $2.5 billion offering equally split between 10-and 30-year tranches. Pertamina completed its debut in the international capital markets the year prior, raising $1.5 billion across a similar 10- and 30-year offering.
Barclays Bank PLC, Citigroup Global Markets Limited, and The Royal Bank of Scotland plc acted as joint bookrunners and joint lead managers. PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas acted as co-managers.
Editing by Johannes Simbolon