The 3y and 5y of Bank BTN Bonds Offer c.172-211bps Risk Premium
Bank Tabungan Negara, Tbk (BBTN IJ, idAA+/Sta) prices the 3y bond of IDR1.5trn at 8.2% and 5y bond of IDR1.65% at 8.75%. The price for 3y bond was similar to the bonds issued by Sarana Multigriya Finansial (SMF, also rated idAA+/Sta) on mid-June when SUN benchmark yield still traded above 7%. As such, current bonds offered by Bank BTN are attractive enough as they provide circa 172-211bps spread over benchmark yield. Meanwhile, the medium term note (MTN) issued by Astra Autopart, Tbk (AUTO IJ) were priced at 8.3% for 1y series and and 9% for 3y. In the global bond issuance, Lippo Karawaci, Tbk (LPKR IJ, rated Ba3 and BB by Moody’s and Fitch respectively) received decent demand for its USD260mn bond of 6 year which offered at 103.75 of price and 6.2% yield. The bond posted USD1.25bn of incoming bids or oversubscribed by 4.8x. The bond proceed will be used to refinance its maturing bond in 2019.
