Indonesian developer saves with $190m bond

Jababeka International replaces its old notes with cheaper new ones, leveraging on the rarity factor in Asian high-yield and saving over 400bp in funding costs.

Indonesian developer saves with $190m bond
Jababeka, first industrial estate developer to list on the Indonesian Stock Exchange

Jababeka International, an Indonesian-based industrial developer, raised $190 million on Wednesday, exchanging its outstanding paper with the new issue to lower its cost of funds.

The five-year bond is callable in year three, with roughly $134 million in proceeds being used to redeem $175 million of bonds due in 2017, while the remaining $56 million of new cash raised will be used for general corporate purposes, according to sources close to the deal.

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