Danantara's global bond orders reach 4.6 billion US dollars, says Rosan

Jakarta (ANTARA) - Danantara Indonesia CEO and Minister of Investment and Downstreaming Rosan Roeslani stated that the peak orderbook for Danantara’s inaugural global bond issuance reached approximately 4.6 billion US dollars. According to Rosan, Danantara initially set a fundraising target of 1 billion US dollars, but incoming demand hit around 4.6 billion US dollars. “From the planned 1 billion US dollars we wanted to achieve, the book building that came in was roughly 4.6 billion US dollars. Seeing such a high book building, we upsized or increased it from 1 billion US dollars to 1.5 billion US dollars,” Rosan said at the Presidential Office, Presidential Palace Complex, Jakarta, Monday. He said this achievement was obtained after Danantara conducted a series of roadshows to several global financial centres and met with 122 investors from various countries to present the company’s investment strategy and policies. Given the high demand, Danantara decided to increase the bond issuance value to 1.5 billion US dollars. The bonds were issued in two tenors, namely five years and ten years. Rosan explained that at the start of the issuance process, several parties estimated Danantara would have to offer yields above 6 percent to 7 percent due to market conditions facing pressure at the time. However, strong investor demand enabled Danantara to secure more competitive funding costs. The five-year tenor bond was set with a yield of 5.35 percent, while the ten-year tenor was 5.95 percent. “Looking at the demand and the relatively low yield—because if they did not trust us, they would certainly ask for a very high yield premium,” he explained. Rosan added that the success of this first bond issuance opens opportunities for Danantara to issue bonds with longer tenors in the future, including up to 30 years, in line with high market interest in investment instruments issued by Danantara.