Danantara's Inaugural USD 1.5 Billion Global Bond Oversubscribed by Global Investors

Danantara Indonesia has recorded a major achievement in the international financial market. Its inaugural global bond issuance, initially targeted at just USD 1 billion, was met with such enthusiastic demand from global investors that it was oversubscribed by more than four times. Minister of Investment and Downstreaming/Head of BKPM and Chief Executive Officer of Danantara Indonesia, Rosan Roeslani, said the extraordinary investor interest led Danantara to increase the bond issuance value to USD 1.5 billion. “From the planned USD 1 billion we wanted to achieve, the book building reached around USD 4.6 billion. Seeing this high level of interest, we upsized from USD 1 billion to USD 1.5 billion, split into five-year and ten-year tenors,” Rosan stated at the Presidential Palace Complex in Jakarta on Monday. The high investor interest was driven by a series of roadshows Danantara conducted in global financial hubs, including Hong Kong, Singapore, Boston, London, and New York. During these events, Danantara met directly with 122 global investors to present Indonesia’s investment prospects. Beyond successfully raising more funds than targeted, Danantara also secured competitive yields. The five-year tenor bond closed with a yield of 5.35 percent, while the ten-year tenor was at 5.95 percent. “This is a very good result and clear evidence that investor confidence in Indonesia remains high,” Rosan emphasised. From the total USD 1.5 billion issuance, each tenor raised USD 750 million. Rosan confirmed that part of the transaction process has been completed and the proceeds will soon enter Danantara’s account. “On 11 June we completed the signing, and on 18 June the funds will enter Danantara’s account,” he said. Given the positive response from the global market, Danantara is even open to the possibility of issuing bonds with longer tenors of up to 30 years. According to Rosan, investors view Indonesia as having stable and promising economic growth prospects amid global geopolitical and geo-economic dynamics. “Investor appetite is very large because they see Indonesia’s economic growth as relatively stable. Ups and downs in the economic cycle are normal, including amid global geopolitical and geo-economic challenges,” he explained. Notably, the United States accounted for the largest share of investors in Danantara’s inaugural global bond issuance, a shift from trends seen in Indonesia’s previous debt issuances. For the five-year tenor, US investors contributed 38 percent, followed by Europe and the Middle East at 41 percent, and Asia at 21 percent. Meanwhile, for the ten-year tenor, US investor dominance reached 52 percent, with Europe and the Middle East at 31 percent and Asia at 17 percent. This achievement serves as a strong signal that the international market has great confidence in Indonesia’s economic prospects and in Danantara’s future role as a strategic government investment instrument.