Mandiri, others race to attract investors

Mandiri, others race to attract investors

Dow Jones, Hong Kong

Three issuers are racing to get the attention of investors before they close their books for the year as bankers begin pitching potential issuers for 2002.

Indonesian state-owned P.T. Bank Mandiri, the Korean Deposit Insurance Corp. and the Kingdom of Thailand are the last three Asian issuers to tap international markets before the end of the year.

Bank Mandiri is on the road to offer US$100 million of five- year floating rate Eurobonds. KDIC is also on the road this week to market $500 million of four-year exchangeable bonds, and Thailand's government will hold investor presentations Dec. 10 for its planned 35 billion yen of multi-tranche Samurai bonds.

Bank Mandiri and lead manager HSBC Holdings PLC (HBC) are holding road shows in Hong Kong and Singapore Monday and Tuesday, with pricing expected soon after. The deal has already attracted solid interest from banks and private banking retail investors in Indonesia, bankers said.

At an expected price of 500 basis points over the London interbank offered rate, Mandiri's offer will likely sell easily, observers said.

Thailand's government last week approved the launch of a 35 billion yen Samurai bond, Thailand's first overseas sovereign issue since the 1997 financial crisis.

The bonds are expected to be issued in three tranches comprising 9 billion yen in three-year bonds, 13 billion yen in five-year bonds and 13 billion yen in seven-year bonds.

The government said last week the Samurai bond will be priced Dec. 11 after investor presentations Dec. 10.

The average all-in cost of the borrowing is estimated at 1.48 percent, following negotiations with the joint-lead underwriters Nikko Salomon Smith Barney and Daiwa Securities SMBC.

Hong Kong's Pacific Century CyberWorks was back on the front pages last week, with market sources jumping the gun on the company's potential euro- and sterling-denominated bond offers.

PCCW said Friday it "has no immediate plans to access the Euro denominated debt market," following market speculation that the company was going on a road show this week to market bonds worth 500 million euro and 150 million pounds.

While there are no immediate plans, bankers say that a bond issuance would be feasible early next year.