Indonesian energy and construction firm Truba Alam TRUB.JK has delayed its planned dollar bond issuance, according to an email sent to investors on Wednesday.
The firm did not give any reason for the delay in the email but banking sources have said the sale struggled because of adverse credit market conditions.
The transaction could have been the year's first high-yield corporate debt sale from an Asian firm to global investors, and the move is likely to shift the focus to Singapore-listed Noble Group another high-yield issuer in the midst of a bond sale.
Truba's decision may highlight the uphill battle faced by Asian "junk" issuers in attracting investor demand, as global credit fears linger nearly a year after the U.S. subprime mortgage market began to collapse.
Truba Alam postponed the deal after setting guidance on May 7 for a $100-$150 million sale of three-year senior unsecured bonds at a yield of 17 to 18 percent.
Sunday, May 25, 2008
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