An increased $150 million lower tier 2 transaction was completed at Asia's close on Friday by lead managers JPMorgan and BNI Sekuritas. The 10 non-call five transaction was priced at 99.041% on a coupon of 10% to yield 10.25% or 740bp over Treasuries. Should the transaction fail to be called at year-five, the spread steps up to 1,100bp. Fees total 1%.
Pricing came at a slight new issue premium to Bank Mandiri, whose recent tier 2 transaction was yielding 9.99%, equating to 715bp over Treasuries. In absolute terms, however, BNI has secured itself a much more cost effective deal by waiting just three-and-a-half months and taking advantage of further US interest rate cuts.
Mandiri...
