Indonesia’s state asset fund Danantara Indonesia has raised USD 1.5 billion through its inaugural global bond issuance, after investor demand exceeded the initial fundraising target. 

Danantara CEO Rosan Roeslani said the offering was initially planned at USD 1 billion, but was increased following strong demand during the book-building process, which generated approximately USD 4.6 billion in orders. 

“We met around 122 investors from various countries during the roadshow. Initially, we planned to raise USD 1 billion, but orders reached approximately USD 4.6 billion during the book-building process,” Rosan said, as quoted by The Jakarta Post. 

The issuance was divided into two equal tranches: USD 750 million in five-year notes with a yield of 5.35%, and USD 750 million in 10-year notes with a yield of 5.95%. The transaction was signed on June 11, with proceeds expected to be transferred to Danantara’s account on June 18. 

Investor participation was led by the United States, particularly in the longer-tenor tranche. For the five-year bonds, investors from the United States accounted for 38% of allocations, followed by Europe and the Middle East at 41%, and Asia at 21%. For the 10-year bonds, US investors accounted for 52%, followed by Europe and the Middle East at 31%, and Asia at 17%. 

Rosan said the investor composition marked a shift from previous Indonesian global bond issuances, which have historically attracted a larger share of Asian investors. The international roadshow was held across Hong Kong, Singapore, Boston, London, and New York, with Danantara meeting 122 global investors to present its investment strategy, policy direction, and institutional framework. 

“Many people predicted that nobody would want to buy the bonds, or that we would have to offer very high rates. Neither of those happened,” Rosan said, as quoted by The Jakarta Post. 

“This demonstrates that the credibility of both Danantara and the government remains strong, especially when we engage investors openly and transparently and clearly communicate our future plans.” 

The bond issuance came as President Prabowo Subianto urged officials to communicate positive developments in Indonesia’s investment landscape. Cabinet Secretary Teddy Indra Wijaya said the successful book-building process provided “valid facts and data demonstrating the increasing international trust in Indonesia’s strategic economic sectors,” as quoted by Antara News. 

Following the strong demand, Danantara is considering future issuances with longer maturities, including bonds of up to 30 years. 

“Going forward, we see opportunities to issue bonds with maturities of up to 30 years because investor interest has been very strong. Investors view Indonesia’s economic growth as stable despite ongoing geopolitical and geoeconomic challenges,” Rosan said, as quoted by Jakarta Globe. 

Danantara has faced criticism over limited financial disclosure, despite being entrusted with managing dividends from state-owned enterprises and potentially receiving capital injections from the state budget, The Jakarta Post reported.