BEI to issue medium-term notes

BEI to issue medium-term notes

JAKARTA: PT Bank Ekspor Indonesia will issue later this month or early next month up to Rp 500 billion (US$56 million) in medium-term notes - the first MTN issuance in the domestic market since the 1997 financial crisis.

Sources familiar with the plan told Dow Jones Newswires Tuesday that the three-year MTNs will be offered in three tranches.

The first tranche will offer a fixed rate, which the bank indicates to be between 17.75 percent and 18.75 percent. The second tranche will offer a lower fixed rate of 16.75 percent to 17.5 percent but will be sold at a discount to par at between 95.4892 and 99.4280.

The third tranche will offer a fixed rate of 17.75 percent to 18.75 percent for the first year and a floating rate thereafter of 200-250 basis points above the average three-month time deposit rate at state banks. -- Dow Jones