BNI bond

Bank Negara Indonesia returns to dollar bond market after hiatus

Rivals speculate that the $500 million bond deal for Bank Negara Indonesia, a state-owned bank, was hard underwritten.
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BNI in downtown Yogyakarta (photononstop)
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<div style="text-align: left;"> BNI in downtown Yogyakarta (photononstop) </div>

Indonesian state-owned lender Bank Negara Indonesia BNI priced a $500 million five-year bond late Tuesday night the first offshore dollar bond from an Indonesian commercial bank since 2003.

The bank had started marketing the bond to investors on Tuesday morning at mid to high 4%, despite the overnight weakness in Europe and the US. This was revised to 4.375% to 4.5% with the bonds pricing at the tight end. Credit Suisse, Deutsche Bank and Morgan Stanley were joint bookrunners.

The deal attracted an order book of $3 billion from 183 investors, with offshore US investors allocated a sizeable chunk 23%. The bonds also traded...

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