KUALA LUMPUR: CIMB Investment Bank has been appointed the joint lead manager and joint bookrunner for the US$2.25 billion (RM9.7 billion) 10-year and US$1.25 billion (RM5.4 billion) 30-year senior unsecured fixed rate notes issued by Indonesia.
In a statement on Wednesday, CIMB said the 10-year tranche was priced at 99.6% with a coupon and yield of 4.75% and 4.80% while the 30-year tranche was priced at 99.3% with a coupon and yield of 5.95% and 6%.
With the maturity dates of Jan 8, 2026 and Jan 8, 2046, respectively, CIMB said both the 10-year and 30-year tranche were priced well below the initial price guidance of 5% and 6.13%, respectively.
Group chief executive of CIMB Group
Tengku Datuk Seri Zafrul Aziz said the collective transaction is the largest issuance by an emerging market sovereign for the second half of this year.
"This appointment is a recognition of our expertise in the Asean debt capital markets and it speaks of CIMB's ability to discover value even in the most difficult operating environments," he said.
The 10-year tranche was allocated over 164 accounts while the 30-year tranche was allocated over 151 accounts. The order book was driven by diversified demand across the United States, Europe and Asia.
The 10-year tranche saw allocations of 62% to the United States, 14% to Europe, 10% to Asia (ex-Indonesia), and the remaining 14% to Indonesia.
CIMB said Indonesia was able to attract interest from a wide range of high quality investors resulting in orders totaling an aggregate of US$8.1 billion, resulting in an over-subscription of 2.3 times.
"This is a testament to investors' confidence and continued positive sentiment surrounding Indonesia's prospects on the back of a positive rating outlook by S&P and reaffirmed stable ratings from Moody's and Fitch.
"The robust demand for the issuance allowed the republic to pre-fund a substantial amount of its 2016 Budget requirements and to further extend the republic's debt maturity portfolio ahead of important market events focused on imminent United States interest rate hike," the bank said. - Bernama
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