Clifford Chance

Clifford Chance advises on US$500m bond offering by Indonesia's Bank Mandiri

Leading international law firm Clifford Chance has represented the lead managers and bookrunners of Bank Mandiri's US$500m Reg S bond offering. The lead managers and bookrunners were CIMB, DBS Bank, Mandiri Securities, MUFG and Standard Chartered Bank.

Bank Mandiri is 60% owned by Indonesia's Ministry of State-Owned Enterprises.

The five-year 4.75% senior unsecured notes were issued off Bank Mandiri's medium-term note programme and were priced at 99.255 to yield 4.92% or Treasuries plus 455bp.

Bank Mandiri's transaction comes as Indonesia continues to battle the effects of the COVID-19 crisis. "Bonds issued by Indonesian state-owned enterprises continue to attract substantial investor interest, even in the turmoil caused by the COVID-19 crisis" said partner Johannes Juette. "We are grateful to be able to assist these Indonesian issuers with raising capital in this difficult environment."

Asian investors accounted for 66% of the take-up of the Bank Mandiri bonds. EMEA and offshore US investors took 34%. Investors in fund and asset management accounted for 73% of the bond take-up.

Partner Johannes Juette led on the deal, with support from partner Gareth Deiner, senior associate Claire Neo and trainee solicitor Eugenio Decio.

Clifford Chance has a strong track record of advising on bond offerings by Indonesian issuers. The firm has recently 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; and Bank of New York Mellon as trustee on the US$600m debut bond issuance by Hutama Karya, a state-owned construction company, and on the US$2.5 billion three-tranche bond issuance by Indonesia Asahan Aluminium (Inalum), the state-owned designated holding company for Indonesia's metals and mining assets.