indonesian-power-company-issues-300-million-fiveyear-bond

Indonesian power company issues $300 million five-year bond

Cikarang Listrindo prices its high-yield bond at the end of an eventful week in the debt markets. Deals for Exim Bank of India and Vietnam are both expected to price in the next few days.

Thanks to an aggressive pricing strategy by joint arrangers Barclays Capital and Credit Suisse, Indonesian power producer PT Cikarang Listrindo managed to execute a sizeable deal at the end of last week, despite weakening market conditions.

The $300 million high-yield Reg-S deal was issued with a final coupon of 9.25%. The initial yield guidance was 9.75%, but the arrangers managed to tighten that by setting the reoffer price at 99.106bp for a final yield of 9.5%. The bonds mature on January 29, 2015.

The final demand was approximately $1.65 billion from 142 accounts, leaving the deal 5.5 times covered. The majority of participation came from high-quality buy-and-hold investors. Seventy-two percent of the notes...

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