BRI Global Bonds Oversubscribed 5.3 Times

Jakarta, April 1 (Antara) - PT Bank Rakyat Indonesia Tbk (BRI) said its five-year global bonds worth US$500 million floated on March 28 were oversubscribed by 5.3 times, reflecting the state lender`s strong financial fundamentals. The bonds issued at a fixed rate coupon of 2.950 percent will mature on March 28, 2018, BRI corporate secretary Muhamad Ali said in a press statement released on Sunday. The senior unsecured bonds are the first-ever dollar-denominated bonds floated by the bank in the international bond market, he said. He believed the coupon and yield of the BRI bonds are the lowest among those of dollar-denominated bonds ever floated by Indonesian companies in the overseas bond market. The bonds were offered both to institutional and private banking investors, he said. During the offer period the bank received orders from 165 investors with a total value of US$2.65 billion, meaning that the bonds were oversubscribed by 5.3 times, he said. As a result, the bonds could be offered at a yield of 3.125 percent, or 25 basis points below the initial reference price. The bonds which have received a "Baa3" rating from Moody`s and a BBB- rating from Fitch will be listed at the Singapore Stock Exchange on April 2, 2013. BRI has appointed Citigroup Global Markets Limited and Standard Chartered Bank as Joint Bookrunners with PT Bahana Securities as co-manager for the bond offer. The bank will use net proceeds from the issuance of the bonds for general funding and strengthen its funding structure, he said.