November 13, 2017 / 2:39 PM / a year ago

Sawit Sumbermas pulls US$300m 5NC3s

HONG KONG, Nov 13 (IFR) - Indonesian palm oil producer Sawit Sumbermas Sarana pulled a US$300m bond after a weaker backdrop dampened risk appetite for the high-yield issuer.

The transaction, which had expected ratings of B1/B+ (Moody’s/Fitch), was pulled after announcing final guidance of 7.0% for the five-year non-call three notes at the London open.

Marketing began this morning in Asia at 7.25% area.

Total orders reached US$650m.

Investors were said to be more cautious during bookbuilding, according to a banker on the deal, who added that the issuer was unlikely to return to the international bond markets in the near term.

BNP Paribas and Citigroup were joint bookrunners for the Reg S issue, as well as joint lead managers with CIMB.

The company owns and operates 19 oil palm estates covering 70,603 hectares of planted area in Indonesia. (Reporting by Frances Yoon)

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