Indonesia’s state-owned oil and gas company Pertamina has a dual-tranche bond deal totalling $3.25 billion. The Regulation S/144A transaction is split into two tranches of $1.625 billion each. One tranche has a maturity period of 10 years and carries a yield of 4.3 per cent, while the other tranche has a maturity period of 30 years with a yield of 5.625 per cent. With this transaction, Pertamina becomes the first ever issuer to successfully raise more than $3 billion at one go and more than $1.5 billion for a 30-year maturity period. The final order book for the 10-year bonds stood in excess of $8.7 billion from 387 accounts, with 39 per cent of the bonds sold in Europe, 32 per cent in the US, and 29 per cent in Asia. By type of investors, asset and fund managers accounted for 76 per cent of the bond sale, followed by banks (9 per cent), insurance companies (7 per cent), private banks (4 per cent), and sovereign wealth funds, pension funds, and corporate firms (4 per cent). The 30-year bonds attracted orders worth over $5.7 billion from 280 accounts, with 40 per cent of the paper allocated in the US, 38 per cent in Asia, and 22 per cent in Europe. Asset and fund managers also purchased the bulk of the paper at 68 per cent, followed by banks (17 per cent), insurance companies (8 per cent), private banks (4 per cent), and sovereign wealth funds, pension funds, and corporate firms (3 per cent). The joint bookrunners of the transaction were Barclays, Citi, and the Royal Bank of Scotland. The proceeds from the bond offering will be used by the firm to cover capital expenditure and for general corporate purposes.
