Wednesday, May 18, 2011

Pertamina pricing bonds

PT Pertamina issue US$1 billion bonds due 2021 with coupon 5.25%. Pertamina’s debut bond proved to be a resounding success, with 330 accounts placing $7 billion of orders.

The initial guidance was released on Monday at 5.625% to 5.75%. This was later tightened to 5.5% to 5.625%, with the bonds pricing at the tight end of final guidance to yield 5.5%. The coupon was fixed at 5.25%.
The deal received strong participation from US investors, who bought 42%. Asian investors bought 36% and European investors bought 22%. The book was dominated by fund managers, which took 70%, while insurers, pension funds and central banks bought 12%, banks 10% and private banks 8%.

Pertamina hired Citi, Credit Suisse and HSBC as a bookrunners. Danareksa Sekuritas and Mandiri Sekuritas were also involved in the deal as co-managers.

The bond proceeds will be used for financing capital expenditures and for general corporate purposes.

Pertamina is a 100% Indonesian government-owned,fully-integrated oil and gas corporation, with operations in upstream oil, gas and geothermal exploration and production, downstream oil refining, marketing, distribution, transportation and trading of petroleum products.

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