In what represents the first pure fixed rate dollar benchmark from Indonesia since the financial crisis, PT Medco Energi priced a scaled down $100 million bond yesterday Tuesday.
Issued in the name of MEI Euro Finance Ltd, the five-year issue was led by Credit Suisse First Boston and priced at 98.09% on a coupon of 10% to yield 10.5% or 585bp over Treasuries.
The transaction represents an important new marker as Indonesian credits attempt to return to the international bond markets and follows HSBC's pioneering efforts with a $125 million FRN for Bank Mandiri just before Christmas. At first sight, however, final pricing appears exceptionally wide given expectations for a yield around the...
