DBS completes first public bond issue guaranteed by the CGIF for Protelindo Finance B.V
Marks the company’s first foray into the international bond markets
Leveraging CGIF’s financial strength and AA rating, the issue attracted strong interest from a broad spectrum of high quality institutional investors, with an order book of close to SGD200 million. Investors in Singapore were allocated the majority (91%) of the issue. Asset managers, insurance companies and sovereign wealth funds were allocated 97%, and the remaining 3% allocated to private banks and banks.
The transaction was also the largest with the longest tenor since CGIF was established in 2010. DBS was the Sole Financial Advisor.
Kiyoshi Nishimura, Chief Executive Officer, CGIF said, “CGIF is set up under the framework of Asian Bond Market Initiative to facilitate bond issuances by good companies in the ASEAN+3 countries to issue bonds in the local currency bond markets. Hence with CGIF's guarantee, Protelindo was able to access the SGD bond markets at a longer tenor and at pricing which it would have been unable to do so despite its good stand-alone credit. CGIF hopes that this first transaction with our support will pave the way for Protelindo to tap the SGD bond markets on its own in future to meet its funding needs.”
Clifford Lee, Head of Fixed Income, DBS Bank said, “We are very pleased to be able to bring this transaction to the market as this marks another significant milestone in the development and opening up of local currency bond markets in the region. The deal was structured to leverage off CGIF’s good understanding of Asian credits as well as it’s guarantee. The final funding cost efficiency achieved by Protelindo is a strong testament to the value of the CGIF structure. The fact that the issuer’s full bond issuance needs was met in the SGD bond market also reflects the strength and depth of the SGD bond markets. DBS is excited to be able to bring another inaugural structure to the market and we will look forward to more opportunities to work with the CGIF to further develop the Asian bond markets.”
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