Republic of Indonesia’s $1bn 6.75% notes due 2014
Deutsche Bank and JPMorgan were joint lead managers and joint bookrunners
Indonesia’s $1bn bond offering was a textbook transaction in every sense, made more remarkable by the fact that it marked the country’s return to the capital markets after a seven-year absence. If proof were needed that the international investor community had bought into Indonesia’s turnaround, that was it.
Pricing cut through the BB-rated emerging market sovereign yield curve – Indonesia’s B2/B rating proving no deterrent to investors. Indeed, the deal priced tighter than secondary trading levels of major BB-rated and higher to similar B-rated emerging market sovereigns, such as the Philippines, Colombia and Brazil.
The order book of more than $4bn was eight times oversubscribed. Added to the merits of this deal were: strong secondary market performance; wide distribution across international investors; the quality and volume of investors; and a record timeframe for deal execution (just five weeks from mandate).
