Herbert Smith has recently advised The Hongkong and Shanghai Banking Corporation Limited, Mitsubishi UFJ Securities International plc and Standard Chartered Bank (together the “Joint Lead Managers”) on the establishment of a US$1.5 billion euro medium term note programme (the “Programme”) and the first issue of US$500 million 3.75% notes due 2017 issued under such Programme.
Indonesia Eximbank was established in 2009 through an Act of Parliament and is wholly owned by the Republic of Indonesia. The Programme was rated BBB- by Fitch and Baa3 by Moody’s, which is in-line with the rating of the Republic of Indonesia. This Programme marks the first ever Regulation S EMTN programme established in Indonesia and the first issue was the first tap by Indonesia Eximbank of the international debt capital markets.
Herbert Smith acted as sole international transaction counsel to the Joint Lead Managers on this transaction. The team was led by our capital markets partner Philip Lee. He was supported by associatesNupur Kant, Andrew Bennett and Yun Chen and trainee Harry Ormsby.
Hiswara Bunjamin & Tandjung (“HBT”), the associate firm of Herbert Smith advised Indonesia Eximbank on the Indonesian law aspects of this transaction. The HBT team was led by Ibnu Fajar Ramadhan who was supported by Adrian Cornellius, Melissa Rebecca and Rahmellya Sari.
Philip Lee commented:
“This is a historic deal for Indonesia and all parties involved. Given the current volatility in the capital markets, I expect to see more EMTN programmes being established in Indonesia as programmes allow issuers to put in place documentation that allows them to tap the market with fairly light documentation when a favourable issue window opens. This was a great deal for Herbert Smith and HBT as it plays on our strong Indonesian capital markets offering and our depth of experience in MTN work in the APEC region and Indonesia in particular.”
