Indika Energy, a leading Indonesian coal miner and contractor, yesterday successfully executed the first part of its capital raising and bond exchange programme. On completion of the full transaction next month, it will have issued a new seven-year US-dollar bond with a total size of $300 million.
The bonds issued for cash amounted to $115 million and attracted an order book of $1.7 billion. Clearly, that level of oversubscription indicated significant unfilled demand, which was confirmed by the price action in the secondary market. The bonds traded up to 102.5 at the break yesterday and maintained that strength throughout trading hours.
The deal size was limited...
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