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| Pertamina’s $965 million term loan | |
| Mandated lead arrangers | DBS, ANZ, BTMU, Mizuho, RBS, OCBC Bank, Sumitomo Mitsui Banking Corp, HSBC |
| return to the Deals of the Year 2013 index | |
The largest integrated oil and gas producer in Indonesia is government owned and is also the de facto owner of all oil and gas reserves across the country.
Eight banks acted as underwriter, mandated lead arranger and bookrunner on the syndication of Pertamina’s five-year $965 million syndicated facility.
The transaction was initially sized at $602 million but was subsequently upsized to $965 million following an enthusiastic response from bank investors during the book-building process. The additional funds were for general corporate purposes, capital expenditure and working capital.
In spite of the challenging terms and pricing, 21 banks registered commitments and the transaction will also help to attract Taiwanese liquidity for Indonesian deals.
In comparison to Pertamina’s two previous deals, the terms were seen as difficult. This was particularly so because the deal came in the immediate aftermath of the European liquidity crisis.
The overwhelming response prompted the 60% rise in loan amount and was at least partly due to Moody’s upgrade of the sovereign rating of Indonesia to investment grade in January 2013, which made Indonesian transactions attractive as an alternative to Indian transactions in particular.
In a year when several claimed to be watershed transactions, this was one of the few that lived up to that billing. It marked the start of an influx of Taiwanese liquidity into Indonesia and opened the door for participation by Taiwanese investors in Indonesian transactions including the Trans Retail deal and the Protelindo deal.
