KIJA Successfully Raised US$70 Million Through Re-tap of Existing Bond

PT Kawasan Industri Jababeka Tbk (“Jababeka”) is pleased to announce that it has successfully raised USD70 million via a re-opening of its outstanding USD190 million 7.5% 144A/Reg S bond due 24 September 2019.

The transaction marks a well-received return for Jababeka in the international bond markets after the company priced the USD190 million bond issue in conjunction with a liability management exercise in September 2014.  The final price of the re-opening was set at 101.375, allowing the company to raise the new funding at a yield that is below the 7.50% coupon set in the initial offering in September 2014.  Demand for Jababeka’s re-opening transaction was strong and more than 8x oversubscribed, with a final orderbook in excess of USD579 million garnered from 52 investors, of which, high quality institutional investors received 97% of final allocations with the remaining 3% going to private banks.

This represents another highly successful transaction for Jababeka in the international bond markets. The Company is pleased with the continued support from its existing investor base as well as participation from new investors for this offering. A part of the proceeds is intended to be used to redeem the remaining portion of Jababeka’s outstanding USD 11.75% 2017 bonds, allowing the company to achieve its objectives of lowering its funding costs, terming out its debt maturity profile and reducing refinancing risks going forward. Jababeka’s recent forays into the international capital markets clearly reflect its growing reputation as a sophisticated borrower in Asia, capable of utilising innovative financing exercises to optimise its funding and capital structure.

Standard Chartered Bank and UBS acted as Joint Global Coordinators and Joint Bookrunners while JP Morgan acted as a Joint Bookrunner for the offering.