A unit of Indonesia’s sovereign wealth fund Danantara raised $1.5 billion in its debut US dollar bond sale, a term sheet seen by Reuters early on Friday showed, after strong demand allowed it to increase the deal size and cut the final yields.
The sale was a key test of foreign investor appetite for Indonesian assets at a time when investors have worried about a sharp fall in the rupiah, President Prabowo Subianto’s populist policies and Danantara‘s widening role in the economy.
Danantara Investment Management sold $750 million in five-year notes and $750 million in 10-year notes, the term sheet showed.
Reuters reported on Thursday, citing three sources with knowledge of the matter, that the company was looking to raise about $1 billion, split equally between the two maturities.
The five-year bonds were priced to yield 5.35%, while the 10-year bonds were priced to yield 5.95%.
The deal drew more than $4.6 billion in orders by Thursday evening in Asia, according to an earlier order book update seen by Reuters on Thursday.
The demand allowed the company to lower the final yields by 35 basis points from its first price guidance. A basis point is one hundredth of a percentage point.
The initial price guidance was around 5.70% for the five-year notes and around 6.30% for the 10-year notes, according to an earlier term sheet.
Bank Indonesia on Tuesday raised its benchmark interest rate by 25 basis points in a rare off-cycle move, lifting it to 5.50% to help steady the rupiah after the currency hit a series of record lows.
Danantara was launched by Prabowo in February 2025 and reports directly to the president.
Danantara Investment Management will use the proceeds for general corporate purposes, including investments and refinancing existing debt, the term sheet showed.
The notes are expected to be issued on June 18 under its $5 billion global medium-term note programme.
Citigroup, DBS, HSBC, Mandiri Securities and Standard Chartered were joint bookrunners and joint lead managers for the deal.
Reuters
