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Indonesia's Protelindo debuts in Singapore bond market with S$180 million issue

PROTELINDO Finance has sold its first international bond in Singapore guaranteed by the Asian Development Bank's Credit Guarantee and Investment Facility (CGIF).

The issuance by Protelindo, an Indonesian telco infrastructure company, was a 10-year S$180 million 3.25 per cent bonds, said DBS Bank on Friday. DBS is the sole financial adviser and a joint book runner with OCBC Bank.

Protelindo's parent company, PT Profesional Telekomunikasi Indonesia, is the largest independent owner and operator of telecommunications towers in Indonesia, said DBS.

The issuance is the first CGIF-guaranteed transaction which was marketed on a bookbuilding basis to a range of institutional investors, said DBS.

Established in November 2010, CGIF aims to promote financial stability and boost long-term investment in the region. CGIF provides guarantees on local currency-denominated bonds issued by companies in the region. Such guarantees will make it easier for firms to issue local bonds with longer maturities.

They will also help reduce the currency and maturity mismatches which caused the 1997-1998 Asian financial crisis and make the regional financial system more resilient to volatile global capital flows and external shocks.

Leveraging CGIF's financial strength and AA rating, the issue attracted strong interest from a broad range of institutional investors, with an order book close to S$200 million, DBS said.

Investors in Singapore were allocated the majority (91 per cent) of the issue. Asset managers, insurance companies and sovereign wealth funds were allocated 97 per cent, and the remaining 3 per cent went to banks.