International law firm DLA Piper advised Indonesia’s state-owned bank, Bank Mandiri, on its US$500 million bond offering. The five-year 4.75% senior unsecured notes were issued off the bank’s medium-term note programme, and were priced at 99.255 to yield 4.92%.
The issuance was oversubscribed almost five times, with demand from international investors reaching more than US$2.4 billion. The lead managers and bookrunners were CIMB, DBS Bank, Mandiri Securities, MUFG and Standard Chartered Bank.
The advisers to the issuers on the transaction were DLA Piper Singapore and Melli Darsa/PWC law. Clifford Chance Singapore and Assegaf Hamzah and Partners (AHP) in Jakarta counselled the arrangers.
DLA Piper country managing partner in Singapore, Joe Bauerschmidt, who led the team advising on the transaction, told Asia Business Law Journal: “The nature of the legal work was a complete update of the bank’s disclosure and offering circular to update the 2020 programme, and to add significant disclosure on the COVID-19 situation as well. We then closed the normal bond offering documents for the new US$500 million offering and sale.
“This is our third mandate from Bank Mandiri in five years, and it is our privilege to assist them in a major transaction with a compressed timeline during the COVID-19 outbreak. We are seeing a lot of work in the technology sector as well as banks (fintech, e-commerce, e-logistics) and industrials (mostly multinational companies). This transaction demonstrates that the best issuers and law firms can still get important deals done, despite the current COVID-19 landscape.”
Bauerschmidt was assisted by of counsel Oscar Franklin Tan and trainee Gaurav Kapoor on the deal.