BRI prices sub debt deal

Microfinance bank completes one of the most successful bond deals from Indonesia in recent years.

UBS priced a $150 million debut subordinated debt issue for Bank Rakyat Indonesia BRI yesterday Thursday.

The 10 non-call five lower tier 2 deal was priced at 99.471% on a coupon of 7.75% to yield 7.875%. This equates to a spread of 482bp over Treasuries, or 439bp over Libor. Fees total 45bp.

Pricing at these levels is not only considerably tighter than the pre-marketed range, but significantly through the trading levels of government-owned comparables such as Bank Mandiri and Bank Negara Indonesia BNI. Most people, including the lead manager, had assumed BRI would have to price at a small pick-up to its larger competitors and indeed the deal was...

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