Allen & Overy announced that it had advised BNP Paribas, Citi, UBS, HSBC, Mandiri and Mizuho Securities as joint bookrunners on Saka Energi Indonesia’s (Saka) debut 144A/Reg S Hong Kong offering of US$625 million in 4.45% senior notes due in 2024.
The deal represented energy company Saka’s first US dollar bond issue into the market. The bond offering is the first in two years by a quasi-sovereign Indonesian issuer, attracting investor demand of more than US$4 billion.
The firm said that while Saka’s parent is PGN, the notes did not benefit from a direct guarantee from PGN. Instead of a guarantee, investors received a change-of-control put at 101% if: (i) the government of Indonesia ceases to directly own and control at least 51% of PGN’s shares, plus PGN’s ratings decline if it was investment-grade at such time (a double trigger); or (ii) PGN (or any successor entity) ceases to control Saka and directly or indirectly own at least 51% of Saka’s shares.
Saka is an oil and gas exploration and production company and the upstream arm of the state-owned Perusahaan Gas Negara, Indonesia’s largest natural gas transportation and distribution company.
Legal counsel: The A&O team was co-led by partners Amit Singh and Daniel Ginting, with support from counsel Michele Discepola, senior associates Felipe Duque and Mohammad Andrew, associates Deska Widianto and Bryna Djuhar, and trainee Tyas Hardianto.