Tender's game: BSD cuts costs with bond

Falling bond yields convince Bumi Serpong Damai to redeem an old bond — and to quickly replace it with cheaper funding.

Tender's game: BSD cuts costs with bond

Indonesian township developer Bumi Serpong Damai BSD turned to investors with a new bond issue this week, cutting its funding costs after pulling off a tender for an old deal.

The company raised $200 million from a new seven-year bond that becomes callable after four years, giving investors a yield of 5.75%. That was in line with initial guidance of “the 5.75% area”. But the bond priced below par, giving investors that return by offering...

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