CIMB is joint lead manager, bookrunner for US$3.5b Indonesian bond sale

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KUALA LUMPUR (Dec 16): CIMB Group Holdings Bhd said its unit CIMB Investment Bank had jointly managed the Indonesian government's US$3.5 billion (RM15.08 billion) bond issuance .

In a statement today, CIMB Group chief executive Tengku Datuk Seri Zafrul Aziz said CIMB Investment acted as the joint lead manager and joint bookrunner for the US$2.25 billion 10-year and US$1.25 billion 30-year senior unsecured fixed rate notes.

"We are pleased to be the only ASEAN bank appointed to lead this landmark transaction. The collective transaction is the largest issuance by an emerging market sovereign for the second half of this year.

"This appointment is a recognition of our expertise in the ASEAN debt capital markets and it speaks of CIMB's ability to discover value even in the most difficult operating environments," Tengku Zafrul said.

According to him, the transaction is a drawdown from Indonesia's US$40 billion global medium-term note programme.

Under the US$3.5 billion scheme, the US$2.25 billion 10-year programme matures on Jan 8, 2026 while the US$1.25 billion 30-year scheme's maturity date falls on Jan 8, 2046, according to him.

Tengku Zafrul said the US$3.5 billion scheme received institutional orders amounting to US$8.1 billion, representing an over-subscription of 2.3 times.

"This is a testament to investors' confidence and continued positive sentiment surrounding the Republic's prospects on the back of a positive rating outlook by S&P and reaffirmed stable ratings from Moody's and Fitch.

"The robust demand for the issuance allowed the Republic to pre-fund a substantial amount of its 2016 budget requirements and to further extend the Republic's debt maturity portfolio ahead of important market events focused on imminent US interest rate hikes," he said.

At Bursa Malaysia, CIMB shares rose seven sen or 1.6% to settle at RM4.47 at 12.30pm for a market value of RM38.12 billion. The stock saw some 1.7 million shares transacted.

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