Feb 15, 2012

Cikarang draws US$4.3 bio demand

Investor is hunger to buy US$500 million bonds to be issued by PT Cikarang Listrindo. The total demand for the bonds surpassed US$4.3 billion or Rp38.7 trillion.
Cikarang's debts are to be the first from Indonesia to test the global market after the country's credit rating was improved by two rating agencies Moody's Investors Service and Fitch Ratings.
Barclays Plc and Credit Suisse Group are the arranger for the bonds sale, charging 6.95% coupon a year. Standard & Poor's Ratings Services (S&) yesterday said its BB- issue rating on the US$500 million 6.95% senior notes due 2019 by Listrindo Capital B.V. remains unchanged after the pricing. The notes are unconditionally and irrevocably guaranteed by PT Cikarang Listrindo (BB-/Stable/--).
Cikarang will use part of the notes proceeds to refinance a portion of its outstanding 2015 notes through a tender offer. The remaining proceeds will be used to partly fund a new coal-fired power plant and general corporate purposes.

Disclosure: No position at the stock mentioned above.

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