The investment arm of Indonesia’s sovereign wealth fund Danantara has launched a U.S. dollar bond in five- and 10-year tranches and is targeting about $500 million for each tranche, three sources with knowledge of the matter said on Thursday.
Danantara Investment Management set initial price guidance at around 5.70% for the five-year notes and about 6.30% for the 10-year notes, according to a term sheet reviewed by Reuters.
The launch comes at a precarious time for Indonesia, as investors, worried about a free-falling rupiahIDR= and President Prabowo Subianto’s populist policies, cool on Southeast Asia’s largest economy.
Concerns are also mounting over Danantara’s expanding mandate, with the sovereign wealth fund most recently tasked to become the sole exporter of palm oil, coal and ferroalloys from as early as September under a newly established unit.
Danantara Investment Management said it plans to use the proceeds from the bond sales for general corporate purposes, including investments and refinancing existing debt, with the bonds set to be issued under its $5 billion global medium-term note programme.
The notes are expected to be rated “Baa2” by Moody’s and “BBB” by S&P and Fitch.
The firm has mandated Citigroup, DBS, HSBC, Mandiri Securities, and Standard Chartered as joint bookrunners and joint lead managers for the deal.
Danantara was launched by Prabowo in February 2025 and reports directly to the president.
Reuters
