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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About DBSDBS - Living, Breathing AsiaDBS is a leading financial services group in Asia, with over 250 branches across 17 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest in Asia-Pacific. DBS has been recognised for its leadership in the region, having been named “Asia’s Best Bank” by The Banker, a member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global Finance. The bank has also been named “Safest Bank in Asia” by Global Finance for six consecutive years from 2009 to 2014.
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