JAKARTA, June 12 — Indonesia’s sovereign wealth fund Danantara Indonesia has raised US$1.5 billion (US$1 = RM4.05) through its inaugural international bond offering, attracting about US$4.6 billion in orders, more than three times the size of the issuance.
Danantara Indonesia said the offering, issued through Danantara Investment Management (DIM), was completed amid challenging global economic conditions, heightened geopolitical uncertainty and elevated United States (US) Treasury yields.
“Strong global investor enthusiasm was reflected in the peak orderbook of approximately US$4.6 billion, or more than three times the total issuance size,” it said in a statement on Friday.
DIM sold US$750 million in five-year bonds priced to yield 5.35 per cent and US$750 million in 10-year bonds priced to yield 5.95 per cent.
Investors from Europe, the Middle East and Africa accounted for 41 per cent of allocations in the five-year tranche, followed by the US at 38 per cent and Asia at 21 per cent.
For the 10-year tranche, US investors represented 52 per cent of allocations, ahead of Europe, the Middle East and Africa at 31 per cent, and Asia at 17 per cent.
Danantara said the five-year tranche attracted orders exceeding US$1.45 billion from 68 accounts, while the 10-year tranche received orders of more than US$1.35 billion from 63 accounts.
The agency said the pricing outcome underscored investor confidence in DIM’s credit profile, governance framework and institutional positioning despite the debut nature of the transaction.
