AHP Advises on Three Major International Debt Offerings Involving State-Owned Entities
This past month, AHP represented the Joint Lead Managers, Dealers and Issuer in three different debt offerings by state-owned entities.
The first offering is PT Hutama Karya (Persero)'s debut global bonds of USD 600 million 3.75% Notes due 2030. Hutama Karya is Indonesia's state-owned leading infrastructure developer and the notes were part of Hutama Karya's USD 1.5 billion Medium Term Notes Programme. The notes are guaranteed by the Republic of Indonesia, which marked the first time that the Republic of Indonesia has guaranteed notes issued in an international offering. AHP represented Citigroup Global Markets Inc.; Deutsche Bank AG, Singapore Branch; The Hongkong and Shanghai Banking Corporation Limited; Mandiri Securities Pte. Ltd.; and MUFG Securities Asia Limited Singapore Branch, as the Joint Lead Managers.
This was followed by PT Bank Mandiri (Persero) Tbk's second issuance of the Euro Medium Term Notes Programme amounting to USD 500 million 4.75% Notes due 2025. This issuance is part of Bank Mandiri's USD 2 billion Euro Medium Term Notes Programme, issued as part of Bank Mandiri's effort to strengthen its liquidity. AHP represented CIMB Bank Berhad, Labuan Offshore Branch; DBS Bank Ltd.; Mandiri Securities Pte. Ltd.; MUFG Securities Asia Limited; and Standard Chartered Bank as the Dealers.
The last issuance was the largest issuance from an Indonesian corporate in the year to date, the USD 2.5 billion Reg. S/Rule 144A notes offering by PT Indonesia Asahan Aluminium (Persero) or Inalum, the holding company for Indonesia's state-owned mining companies, where AHP represented Inalum as the Issuer. The notes consisted of a USD 1 billion 4.750% notes due 2025, a USD 1 billion 5.450% notes due 2030, and a USD 500 million 5.800% notes due 2050.
These offerings are groundbreaking not only because these were successfully priced during the coronavirus crisis, but also because the offerings are a testament of Indonesia's potential and investors' confidence and trust in the nation. Hutama Karya, Bank Mandiri and Inalum's notes were oversubscribed by 6x, 4.8x and 6.4x, respectively.
About Assegaf Hamzah & Partners (AHP)
Established in Jakarta, AHP is the largest law firm in Indonesia, with more than 130 lawyers in various practice groups. Since its inception in 2001, AHP has been growing consistently, and currently has 26 partners and more than 120 lawyers.
AHP is also part of the Rajah & Tann Asia network, the largest one-stop legal services provider in Southeast Asia, connecting more than 750 lawyers. This membership gives AHP an advantage, not only because it allows AHP to give the best legal service to its local clients, but also because collectively, it gives AHP the capacity to handle cross-border transactions in a seamless manner.
From the beginning, AHP has always upheld the highest integrity in its practice, among others by refusing bribery and kickback. Innovation is also key for AHP, especially in responding to the clients’ ever expanding needs. One of this innovations is reflected in the establishment of specialised practice groups for tax and fraud and forensics investigation.
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AHP Client Alert is a publication of Assegaf Hamzah & Partners. It brings an overview of selected Indonesian laws and regulations to the attention of clients but is not intended to be viewed or relied upon as legal advice. Clients should seek advice of qualified Indonesian legal practitioners with respect to the precise effect of the laws and regulations referred to in AHP Client Alert. Whilst care has been taken in the preparation of AHP Client Alert, no warranty is given as to the accuracy of the information it contains and no liability is accepted for any statement, opinion, error or omission.