BDN launches Eurobond valued at US$165 million

BDN launches Eurobond valued at US$165 million

JAKARTA (JP): PT Bank Dagang Negara (BDN), Indonesia's fourth
largest state-owned bank, has launched a seven-year floating rate
note (FRN) Eurobond of US$165 million with the Hong Kong-based
J.P. Morgan Securities Asia Ltd. acting as the lead manager.

"This is a ground breaking transaction for Indonesian issuers.
Borrowers are diversifying their sources of funding," Adam
Howard, the head of Capital Market Asia for J.P. Morgan, said in
a statement made available to The Jakarta Post yesterday.

The floating rate note has a coupon of six-month London Inter-
Bank Offered Rate (LIBOR) plus 120 basis points and an offer
price of 99.362 to give a yield of six-month LIBOR plus 135 basis
points.

The issue, which matures on Sept. 7, 2001, is listed in Hong
Kong, Singapore and Luxembourg in denominations of $1,000, whose
deal will be closed on Sept. 7 and is puttable in 1999.

"This issue is the largest in size and longest in tenor of any
financing undertaken by a bank in Indonesia," Howard said, adding
that issuers throughout the Asia-Pacific region have been using
the bond markets with increasing frequency.

The statement said the co-leaders of the deal are Chemical
Securities Asia, HSBC Markets, Kidder Peabody International, KDB
Asia, Korea First Bank, Merrill Lynch HK Securities, Paribas
Capital Markets and Salomon Brothers Hong Kong.

Meanwhile, the co-managers are ANZ Grindlays Bank, Chase
Manhattan Asia, Commercial Bank of Korea, Fuji International
Finance Hong Kong, Hua Nan Commercial Bank Hong Kong, Kexim Bank
of the United Kingdom, LTCB Asia, Nikko Securities Co. Asia and
Societe Generale Asia.

J.P. Morgan, one of the oldest financial institutions in the
world, offers various services, including financial advice,
underwriting and money lending, to governments as well as multi-
national corporations. (09)