Indofood adds to Indonesian credit universe

The company ups the ante with Indonesia''s largest dollar bond offering since the Asian financial crisis.

Lead manager Credit Suisse First Boston sets off on roadshows this Friday with a $200 million five-year bond offering for the Republic's tenth largest company by market capitalization. Pricing of the BB3 rated deal is scheduled for mid-June with tentative expectations for a yield around the 10.5% to 11% mark.

This will place Indofood Sukses Makmur slightly above the current secondary market trading level of PT Medco Energi, which has a one-notch higher rating of B from Standard Poor's. As of yesterday's Asian close, Medco's $100 million March 2007 deal was bid at 10.5% to yield 610bp over Treasuries, while a recent April 2007 issue for BB3 rated PT Telkomsel was bid...

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