Indonesia's sovereign wealth fund, Danantara, is exploring the sale of 30-year bonds, according to Chief Executive Rosan Roeslani. This consideration comes days after its debut global issuance, indicating strong international investor confidence.
Danantara's executives met with 122 investors across London, New York, and Hong Kong during a briefing in Jakarta, where investors expressed willingness to purchase the notes. The potential 30-year bonds would be a further test of investor appetite following the fund's initial success. Indonesia's President Prabowo Subianto established Danantara last year to enhance the efficiency of state-owned enterprises and attract foreign capital, with the fund managing approximately $1 trillion in assets.
Recently, Danantara sold $1.5 billion in its debut global dollar bond sale, comprising $750 million each of five- and 10-year notes. The five-year securities priced at a yield of 5.35%, aligning with other Indonesian government-owned entities. This successful debut comes amidst broader investor concerns following credit outlook cuts to negative by Moody’s and Fitch Ratings due to some of Prabowo’s growth initiatives.
In preparation for its debut bond sale, Danantara hired Citigroup, DBS, HSBC, Mandiri Securities, and Standard Chartered Bank as joint lead managers and bookrunners. The fund also undertook a roadshow in Asia, Europe, and the U.S., including investor meetings in Boston and New York. The proceeds from the bond offering are slated for general corporate purposes, including investments and refinancing outstanding borrowings. Danantara previously secured a three-year loan equivalent to $1 billion earlier this year.
