Danantara Plans to Issue US Dollar Bonds to Raise US$5 Billion

The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) plans to issue bonds denominated in US dollars. The total value of the bonds to be issued by Danantara is reported to reach US5billion, equivalenttoapproximatelyRp89.5trillion(assuminganexchangerateofRp17, 900/US).

According to a Reuters report, Danantara has arranged a series of meetings and has begun engaging with selected investors starting this Wednesday. Danantara Investment Management (DIM) has reportedly appointed Citi, DBS, HSBC, Mandiri Sekuritas, and Standard Chartered to act collectively as lead managers and underwriters.

A series of meetings with bond investors across Asia, Europe, and the US is scheduled to commence on 3 June. If issued, these senior US dollar-denominated bonds will represent a drawdown from the company’s US$5 billion global medium-term note (MTN) programme. The bonds have been assigned a Baa2 rating (negative outlook) by Moody’s and are expected to receive a BBB rating from S&P and a BBB rating from Fitch.