PT Media Nusantara Citra (MNC) Suceeded in Issuing Eurobond USD 168 Million
2006 - Jakarta, 11 Sept 2006

1. PT Media Nusantara Citra(MNC), through Media Nusantara Citra B.V., has succeeded in issuing Eurobond of USD 168 million, which will be listed on Singapore Stock Exchange.


2. The obligation is offered with 10.75% coupons for 5 years tenor with Deutsche Bank and AAA Securities as Joint Lead Manager and PT. Bhakti Securities as Financial Advisor whereas Deutsche Bank is the sole book runner. The transaction was two times oversubscribed with 39 investors taking part.


3. Investor breakdown by geography: Investor breakdown by type: (please click the thumbnail image on the left)


4. Having considered several matters, MNC decided to size the issue from the proposed amount of US$182 million to US$168 million. According to MNC’s President Director, Hary Tanoesoedibjo,” Management decides to reduce the portion of the issued Bond, which will be spent on the expansion program. Instead, we will use our own internal generated cash flow to finance it.”


5. The transaction success was completed in the challenging Asian market, which was skeptical and in difficult condition, especially for those deal offered by the Indonesian issuers. Despite that, MNC has become the first and only Indonesian issuers succeeded in issuing Eurobond since May this year. The transaction also represents MNC as
   the first publicly sold Asian high-yield deal.


6. Obligation of MNC’s Eurobond was affirmed ‘B+’ rating from S&P and B1 from Moody’s due to MNC solid performance and stable cash flow. Moreover, MNC is also considered as the market leader who owns favorable business growth potential.


7. The bond proceed will be spent on refinancing short-term loans(Deutsche Bank bridge loan) and on other due commitments, the balance is to fund working capitals as well as other general corporate purposes.


8. Market has shown very favorable responses to MNC business profile as the largest and only integrated media company in Indonesia.


9. MNC owns, operates, and manages three free-to-air TV stations - RCTI, TPI, and GTV, two 24-hour program channels - MNC News and MNC Entertainment, print media - Daily Newspaper Seputar Indonesia, Tabloid Genie, Tabloid Mum & Kiddie, Tabloid Realita, and a number of radio networks across Indonesia.


10. Market hailed the transaction as an extremely investor friendly one given MNC’s willingness to listen to concerns of investors and amend the transaction structure accordingly.


11. Since the road show in Singapore, Hong Kong, and London in late July this year, MNC and its media subsidiaries have gained exposure to international capital markets and supports from a pool of quality institutional investors. This will establish ground for MNC corporate action going forward.


12. This Eurobond issuance is the first stepping stone for MNC to become international player.