17 April 2020
Clifford Chance advises on Republic of Indonesia's US$4.3B Global Bonds
Leading international law firm Clifford Chance has advised a consortium of banks including Citigroup, Deutsche Bank, Goldman Sachs, HSBC and Standard Chartered Bank as Joint Lead Managers on the Republic of Indonesia's US$4.3 billion three-tranche bond issuance under the Republic's U.S. SEC-registered bond programme.
The proceeds from the bonds will be used to help fund Indonesia's COVID-19 relief and recovery efforts.
The offering marks the largest-ever issuance of dollar-denominated bonds by Indonesia and includes a 50-year tranche, which represents the longest-ever tenor for a public US-dollar deal from Asia.
The bond was sold in three tranches, of 10.5 years and 30.5 years (worth US$1.65 billion each) and 50 years (worth US$1 billion). The bonds due in 2030, 2050 and 2070 carried coupon rates of 3.85%, 4.20% and 4.45%, respectively.
"We are honoured to have assisted the Joint Lead Managers and the Republic of Indonesia on this important transaction, especially in these difficult times,” said partner Johannes Juette. "The choice to offer 50-year bonds is a response by the Indonesian government to investor appetite for long-term maturities, and it was a privilege to work on such a ground-breaking matter."
Johannes led on the deal, with support from partner Gareth Deiner, senior associate Shashwat Tewary, associate Stephanie Liman and trainee solicitor Mehjabin Ahmed.
Clifford Chance has a strong history of advising on prior capital markets offerings by the Republic of Indonesia, having previously advised on the sovereign's Sukuk and Samurai bond programmes, in addition to the SEC-registered bond programme.