Danantara Releases US$5 Billion Global Bond, Appoints 5 Investment Banks

The Danantara Indonesia Investment Management Agency, through its investment manager arm PT Danantara Investment Management (DIM), has officially commenced the issuance of US dollar-denominated international bonds (global bond). This step marks the state-owned enterprise super holding’s debut in raising funds on the global capital market. Danantara has reportedly appointed five leading financial institutions as joint lead managers and bookrunners. The roster of investment banks includes Citigroup, DBS Bank, HSBC, Mandiri Sekuritas, and Standard Chartered. The bookbuilding process for the senior unsecured notes opened today, Wednesday (3/6/2026). The global bond issuance uses a comprehensive regulatory format, namely 144A/3(c)(7)/Reg S, under the Global Medium Term Note (GMTN) programme with a jumbo ceiling of up to US$5 billion, equivalent to approximately Rp89.5 trillion (assuming an exchange rate of Rp17,900 per US dollar). According to a report by International Financing Review (IFR) Asia, Danantara management together with the underwriter consortium is scheduled to hold a series of investor meetings (roadshow) in financial centres across the United States, Europe, and Asia until 10 June 2026 before finalising the pricing and definitive size of the issuance. As an investment-grade instrument, Danantara’s inaugural bonds have successfully obtained a Baa2 rating from Moody’s Investor Service, as well as BBB ratings from S&P Global Ratings and Fitch Ratings. This massive-scale foreign currency fundraising corporate action is being executed simultaneously following the strategic policy of President Prabowo Subianto, who launched Danantara Sumberdaya Indonesia (DSI) as a single window for managing national commodity and natural resource exports. Furthermore, President Prabowo has also issued the latest Presidential Decree underpinning the establishment of a third business unit under Danantara Indonesia’s control, namely the Development Investment Unit. This regulation was signed by the President on 8 April 2026 but was only officially published in the government regulation list on Sunday evening (31/5/2026). The presence of this new unit expands the functional architecture of Danantara Indonesia, which was previously supported by only two pillars: Danantara Asset Management (DAM), which focuses on managing operational aspects and consolidating more than 1,000 state-owned enterprises along with their subsidiary entities; and Danantara Investment Management (DIM), tasked with optimising yields and monetising investments sourced from state company dividends. Referring to the legal framework, the Development Investment Unit is specifically designed to support strategic national projects (PSN) and accelerate public services that have a multiplier effect on social and macroeconomic aspects. Unlike purely commercial units, this development unit is given the flexibility to absorb direct funding from the State Revenue and Expenditure Budget (APBN), which will be classified as State Capital Participation (PMN). Although the institutional structure has been formalised, the government has not yet detailed the list of projects or specific industrial sectors targeted for capital allocation by the new unit. However, market participants believe this dollar bond launch will serve as strong seed capital for Danantara to finance strategic investment commitments amidst the trend of rupiah exchange rate volatility and technical corrections in the Jakarta Composite Index (IHSG).