Pertamina raised $1.9bn via a two-trancher Yankee offering. It raised $1bn via a 5Y bond a yield of 1.4%, or 40bp inside initial guidance of 1.8% area. It also raised $900mn via a 10Y bond at a yield of 2.3%, 40bp inside initial guidance of 2.7% area. The bonds have expected ratings of Baa2/BBB. The 5Y received orders of over $2.3bn, 2.3x issue size – APAC took 50%, EMEA 27%, and the US and others 23%. Fund/asset managers booked 57%, banks 24%, insurers, pension funds and sovereigns, supranationals and agencies 12%, and central banks and official institutions 7%. The 5Y bond saw the lowest coupon ever on an Indonesian dollar bond, after Indonesia’s $1.25bn 1.85% bond due 2031 issued last month. The 10Y received orders over $2.5bn, 2.5x issue size – APAC took 59%, EMEA 27%, and the US and others 14%. Fund/asset managers booked 59%, banks 13%, insurers, pension funds and sovereigns, supranationals and agencies 15%, and central banks and official institutions 13%. Proceeds will be used to finance capital expenditure and for general corporate purposes. The bonds have a change of control put at 101 if the Indonesian government ceases to own a controlling stake, which leads to a rating decline. The 10Y was priced inside the curve by 3bp as compared to its older 3.1% bonds due August 2030, which currently yield 2.33%.
Pertamina Raises $1.9 Billion via Two-Trancher; Sets Record for Lowest Coupon on an Indonesian Dollar Bond
