Telkomsel proves the exception to the rule

Pricing of a debut dollar bond comes tighter than expected as the Indonesian cellular operator bids to oust Globe Telecom as Asia''s sexiest high yield name.

An increased $150 million five non-call three offering was priced yesterday Tuesday by lead manager UBS Warburg after books closed three-and-a-half times oversubscribed. Launched on an issue price of 99.75% to yield 9.825% or 474bp over Libor 532.5bp over five-year Treasuries, the deal surprised a number of observers who believed that 10% would be a psychologically hard hurdle to cross.

The transaction broke the mould of recent Indonesian offerings from PT Medco and Bank Mandiri both of which required...

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