(June 15): Indonesian sovereign wealth fund Danantara is exploring the sale of 30-year bonds following strong demand for its first ever global issuance.
Global investors expressed willingness to buy bonds from the fund with a tenor of as long as 30 years, chief executive Rosan Roeslani said in a briefing in Jakarta on Monday about the bond’s roadshow. Danantara executives met 122 investors across London, New York and Hong Kong, among other cities, he said.
Danantara last week raised US$1.5 billion ($1.9 billion) from the sale of five- and 10-year US dollar bonds, exceeding the initial goal of US$1 billion, he said.
The oversubscription marks a win for President Prabowo Subianto’s brainchild fund that sold the bonds during a period of market turmoil in Southeast Asia’s largest economy, with the rupiah having recently slumped to a record low.
Indonesian assets have since recovered after the central bank announced a surprise interest rate hike to boost bond yields and attract inflows. Danantara’s bond roadshow and the affordable pricing of stocks also contributed to recent gains, Roeslani said.
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