Jakarta – PT PLN (Persero) has received an injection of USD 1.4 billion from global bond issuance. The yield offered by PLN’s global bonds is the lowest compared to other publications.
PLN Finance Director Sarwono said that the global bond was issued with the lowest interest rate throughout the history of US dollar bond issuance both by PLN and from any BUMN in Indonesia for tenors of 10 and 30 years.
Dual-trance USD Global Bond, each amounting to USD 700 million, was issued at an interest rate of 3.875 percent for a tenor of 10 years and 4.875 percent for a tenor of 30 years.
PLN managed to convince potential investors through a series of offers to several countries, namely Hong Kong, Singapore, United Kingdom and the United States since July 4, 2019.
In this publication, PLN is supported by three international rating agencies, namely Moody ‘s, S & P, and Fitch Ratings, each of which provides an assessment of the quality of PLN bond loans with Baa2, BBB and BBB rating levels.
“PLN’s global investment credit rating from the three independent international institutions is at a level equivalent to the sovereign credit rating of the Government of Indonesia,” he said.
According to Sarwono, PLN’s global bond this time is a potential investor grab and oversubscribe more than 4.42 times. This proves, PLN is able to read the best conditions in the international capital market and take quick and appropriate steps.
PLN conducts the bookbuilding process on July 10, 2019 starting from the morning of the Asian market opening, and the final price is determined on the same day.
In the bookbuilding process, PLN received order requests from 118 investor institutions for 10-year tenor bonds and 131 investor institutions for 30-year tenor bonds where the demand was mostly from the United States, Europe and Asia. The majority of these types of investors are Asset Manager, Insurance, Pension Funds and International Banking.
The bond settlement process is expected to occur on July 17, 2019 and is listed on the Singapore Stock Exchange (SGX).
In achieving the success of international bond transactions this time, PLN is assisted by several well-known international financial and banking institutions (i.joint Arrangers and Joint Bookrunners), namely ANZ, BNP Paribas, Citigroup, HSBC, Mandiri Securities, and Standard Chartered Bank. In addition, PLN is also assisted by several co-managers from Indonesia in the bond issuance process, namely PT Bahana Securities, PT BNI Sekuritas, and PT Danareksa Sekuritas.