Latham & Watkins and Ali Budiardjo, Nugroho, Reksodiputro (ABNR) have represented Indonesian state-owned energy giant PT Pertamina (Persero) in its $2.5 billion bond offering, the largest Asian debt issue in the U.S. market so far this year.
The $2.5 billion senior unsecured bond offering was made in two tranches – a $1.25 billion ten-year bond bearing a 4.875 percent coupon rate, and a $1.25 billion 30-year bond with a 6 percent coupon.
The offering was at least three times oversubscribed, according to Dow Jones Newswires. Earlier reports indicated that Pertamina initially expected to raise more than $2 billion from the offering. Last year, the company raised a total of $1.5 billion in global bonds, an issuance in which the firm was represented also by Latham.
The demand for the offering continued a trend of high demand among investors for long-term Asian debt. Last month, for example, a $500 million tranche of 30-year bonds offered by the Chinese National Offshore Oil Company (CNOOC) was close to 20 times oversubscribed, with investor orders in the range of $9.8 billion.
Singapore partners Michael Sturrock and Clarinda Tjia-Dharmadi led the Latham team, which acted as U.S. counsel to the issuer, while ABNR, led by Partner Emir Nurmansyah, acted as Indonesian counsel. Joint bookrunners Barclays, Citibank and HSBC were represented by Davis Polk & Wardwell’s Hong Kong team and Indonesia’s Hiswara Bunjamin & Tandjung. ALB
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